DELTA REGIONAL AUTHORITY 

PERFORMANCE AND ACCOUNTABILITY REPORT 

SEPTEMBER 30, 2018 
DELTA REGIONAL AUTHORITY 

September 30, 2018 

Federal Co-Chairman States’ Co-Chair 

Christopher Caldwell Governor Asa Hutchinson 

Alternate Federal Co-Chairman Alternate States’ Co-Chair

Vacant Kenneth Boswell 

STATE GOVERNORS, DESIGNEES, AND ALTERNATES 

Alabama Louisiana 

Governor Kay Ivey Governor John Bel Edwards 

Kenneth Boswell (Designee) Leslie Durham 

Kelly Chasteen (Alternate) (Designee & Alternate) 

Arkansas Mississippi 

Governor Asa Hutchinson Governor Phil Bryant 

Amy Fecher Bobby Morgan 

(Designee & Alternate) (Designee & Alternate) 

Illinois Missouri 

Governor Bruce Rauner Governor Mike Parson 

Kristy Stephenson (Designee) Luke Holtschneider (Designee) 

Kim Watson (Alternate) Robert Knodell (Alternate) 

Kentucky Tennessee 

Governor Matt Bevin Governor Bill Haslam 

Sandra Dunahoo Brooxie Carlton (Designee) 

(Designee & Alternate) Brian Kelsey (Alternate) 
DELTA REGIONAL AUTHORITY SERVICE AREA 
Page

Agency Head Letter 1 - 3

SECTION 1 – MANAGEMENT’S DISCUSSION AND ANALYSIS

Management’s Discussion and Analysis 4 - 18

SECTION 2 – PERFORMANCE SECTION

Performance Report 19 - 26

SECTION 3 – FINANCIAL SECTION

Independent Auditor’s Report 27 - 30

Basic Financial Statements

Balance Sheets 31

Statements of Net Cost 32

Statements of Changes in Net Position 33

Statements of Resources (Budgetary and Non-Budgetary) 34 - 35

Notes to Financial Statements 36 - 46

Other Information

Combining Balance Sheets 47 - 48

Combining Statements of Net Cost 49 - 50

Combining Statements of Changes in Net Position 51 - 52

Combining Reconciliation of Net Cost of Operations (Proprietary) to Budget 53 - 54

Schedule of Expenditures 55

Schedules of Grants Made 56 - 57

DELTA REGIONAL AUTHORITY 

PERFORMANCE AND ACCOUNTABILITY REPORT 

SEPTEMBER 30, 2018

CONTENTS
1
2
3
SECTION 1 – MANAGEMENT DISCUSSION AND ANALYSIS 
DELTA REGIONAL AUTHORITY 

MANAGEMENT’S DISCUSSION AND ANALYSIS

YEAR ENDED SEPTEMBER 30, 2018 

Introduction 

As management of Delta Regional Authority (DRA or the Authority), we offer readers of DRA’s 

Performance and Accountability Report this narrative overview and analysis of the financial 

activities of DRA for the fiscal year ended September 30, 2018. We encourage the readers to 

consider the information presented here in conjunction with information furnished within this 

report. 

The Delta Regional Authority is a federal-state partnership serving 252 counties and parishes in 

an eight-state region. Led by a Federal Co-Chairman and the Governors of each participating 

state, DRA is designed to remedy severe and chronic economic distress by stimulating economic 

development and fostering partnerships that have a positive impact on the region's economy. 

DRA helps economically distressed communities capitalize on other federal and state programs 

focused on basic infrastructure development, transportation improvements, business 

development and job training services. 

Congress mandated (7 U.S.C.§2009aa) that DRA shall provide funding for the following four 

categories: 

x Basic public infrastructure in distressed counties and isolated areas of distress; 

x Transportation infrastructure for the purpose of facilitating economic development in the 

region; 

x Business development, with emphasis on entrepreneurship; and 

x Job training or employment-related education, with emphasis on use of existing 

public educational institutions located in the region. 

Congressional stipulations include: 

x The Authority will allocate at least 75% of Authority funds for use in distressed 

counties; and 

x The Authority shall allocate at least 50% of any funds for transportation and basic 

public infrastructure projects. 

The following is a discussion and analysis of the operating results and financial position of DRA, 

created by the Delta Regional Authority Act of 2000. The Authority's reauthorization expired on 

October 1, 2018 and was extended by the Agricultural Act of 2018 to 2022. 

As listed in the Management's Discussion and Analysis and throughout the Performance and 

Accountability Report, DRA continues to emphasize performance accountability and 

sustainability within its programs. Please review this document in conjunction with the annual 

financial statements and accompanying notes. 

Program Highlights for Fiscal Year 2018 

In FY 2018, DRA – through its available funding programs – invested $24,673,382 of its 

available funds into 88 projects in its eight-state region. These investments combined with 

$108,679,206 in other federal, state and local funds – a ratio of 4.4 to 1 for a total project 

investment of $133,352,588. Additionally, DRA's investments include private investments 

4
DELTA REGIONAL AUTHORITY 

MANAGEMENT’S DISCUSSION AND ANALYSIS

YEAR ENDED SEPTEMBER 30, 2018 

totaling $866,293,259– a ratio of 35.1 to 1. Ultimately, DRA funded projects include 

$974,972,465 in other public and private investments for a total investment ratio of 39.5 to 1. 

With these investments, DRA’s FY 2018 funding programs are expected to help achieve the 

following results: 

x Provide 149,749 families with access to improved water and sewer; 

x Train 8,857 individuals for a 21st century workforce; and 

x Create and retain 5,228 jobs. 

Fiscal Year 2018 Counties and Parishes 

Distressed counties are defined as those counties that are one percent higher than the national 

average for unemployment for the most recent 24-month period and/or 80% or less than the 

national per capita income. Non-distressed counties are those under one percent of the national 

average for unemployment and more than 80% of national per capita income. 

DRA’s enabling legislation requires the Authority to update its distressed and non-distressed 

county designation annually. The tabulation for Fiscal Year 2018 resulted in 234 distressed 

counties and parishes and 18 non-distressed counties (see list below). 

Alabama Kentucky Mississippi

None None Madison

Rankin

Arkansas Louisiana

Arkansas Ascension Missouri

Desha Cameron Cape Girardeau

Pulaski East Baton Rouge

Union Jefferson Tennessee

Orleans Fayette

Illinois Plaquemines Madison

None St. Charles Shelby

West Baton Rouge

Non-Distressed List as of September 30, 2018

5
DELTA REGIONAL AUTHORITY 

MANAGEMENT’S DISCUSSION AND ANALYSIS

YEAR ENDED SEPTEMBER 30, 2018 

Alabama Lawrence Carlisle Lincoln Holmes Madison

Barbour Lee Christian Livingston Humphreys Mississippi

Bullock Lincoln Crittenden Madison Issaquena New Madrid

Butler Lonoke Fulton Morehouse Jasper Oregon

Choctaw Marion Graves Natchitoches Jefferson Ozark

Clarke Mississippi Henderson Ouachita Jefferson Davis Pemiscot

Conecuh Monroe Hickman Pointe Coupee Lafayette Perry

Dallas Ouachita Hopkins Rapides Lawrence Phelps

Escambia Phillips Livingston Red River Leflore Reynolds

Greene Poinsett Lyon Richland Lincoln Ripley

Hale Prairie McCracken St. Bernard Marion Scott

Lowndes Randolph McLean St. Helena Marshall Shannon

Macon Searcy Marshall St. James Montgomery Ste. Genevieve

Marengo Sharp Muhlenberg St. John the Baptist Panola St. Francois

Monroe St. Francis Todd St. Landry Pike Stoddard

Perry Stone Trigg St. Martin Quitman Texas

Pickens Van Buren Union St. Mary Sharkey Washington

Russell White Webster Tangipahoa Simpson Wayne

Sumter Woodruff Tensas Smith Wright

Washington Louisiana Union Sunflower

Wilco Illinois Acadia Vermillion Tallahatchie Tennessee

Alexander Allen Washington Tate Benton

Arkansas Franklin Assumption Webster Tippah Carroll

Ashley Gallatin Avoyelles West Carroll Tunica Chester

Baxter Hamilton Beauregard West Feliciana Union Crockett

Bradley Hardin Bienville Winn Walthall Decatur

Calhoun Jackson Caldwell Warren Dyer

Chicot Johnson Catahoula Mississippi Washington Gibson

Clay Massac Claiborne Adams Wilkinson Hardeman

Cleveland Perry Concordia Amite Yalobusha Hardin

Craighead Pope De Soto Attala Yazoo Haywood

Crittenden Pulaski East Carroll Benton Henderson

Cross Randolph East Feliciana Bolivar Missouri Henry

Dallas Saline Evangeline Carroll Bollinger Lake

Drew Union Franklin Claiborne Butler Lauderdale

Fulton White Grant Coahoma Carter McNairy

Grant Williamson Iberia Copiah Crawford Obion

Greene Iberville Covington Dent Tipton

Independence Kentucky Jackson DeSoto Douglas Weakley

Izard Ballard Jefferson Davis Franklin Dunklin

Jackson Caldwell Lafourche Grenada Howell

Jefferson Calloway La Salle Hinds Iron

Distressed List as of September 30, 2018

6
DELTA REGIONAL AUTHORITY 

MANAGEMENT’S DISCUSSION AND ANALYSIS

YEAR ENDED SEPTEMBER 30, 2018 

Organizational Structure 

The DRA Board is comprised of Governors from the eight states in the DRA region along with 

the Federal member, Christopher Caldwell, who was appointed by President Trump as the 

Federal Co-Chairman in September 2017 and confirmed by the U.S. Senate in December 2017. 

The Governors annually appoint a States' Co-Chairman, and in FY 2018, Governor Asa 

Hutchinson of Arkansas was elected to serve as the ninth States' Co-Chairman. The DRA statute 

requires the Board to hold an annual quorum meeting, which compels the attendance of a 

majority of the states' Governors. For all other DRA meetings, Governors may appoint a 

designee/alternate to serve in their absence. 

The relationship between the Federal Member and Governors is a partnership where all board 

members share the fiduciary responsibility of the Authority. Moreover, the Board's 

responsibilities are: to establish and approve investments for economic development to the 

region; assess the state of the region; facilitate and recommend interstate cooperation among 

region members; develop model legislation; support and train local development districts; and 

encourage private investment and cooperate with state economic development programs within 

the region. Board decisions require affirmation from the Federal member and a majority of 

participating Governors. 

The Federal Co-Chairman maintains an office within the DRA office and at the end of FY 2018 

was the only full-time federal employee. Additionally, the DRA office employs twelve nonfederal employees who carry out the day-to-day operations within the following areas: Finance 

and Administration; Economic and Community Development; Federal Affairs; and Public 

Engagement and Communication. 

Organizational Chart 

7
DELTA REGIONAL AUTHORITY 

MANAGEMENT’S DISCUSSION AND ANALYSIS

YEAR ENDED SEPTEMBER 30, 2018 

Financial Management of Delta Regional Authority 

DRA utilizes the General Services Administration (GSA) for assistance in the management of 

DRA’s economic development obligations, disbursements, and the financial reporting of its 

federally-appropriated dollars. Because of the Authority’s relatively small size, the use of GSA 

has been very cost-effective. GSA also assists the Authority with compliance with many federalmandated requirements. State administrative funds, along with other funds, are held by banks 

located in the DRA Region and are accounted for by the Director of Finance and Administration. 

DRA completed its 16th year of compliance with the Accountability of Tax Dollars Act of 2002. 

DRA has consistently initiated additional controls and expanded compliance testing to ensure the 

financial integrity of the Authority. 

Financial Highlights 

The following is a summary of changes in assets, liabilities, revenues, expenditures and net 

position at September 30, 2018, as compared to the prior year: 

x Total assets increased $11,308,731 or 23% in 2018 compared to an increase of 

$8,762,538 or 22% in 2017; 

x Total liabilities increased $5,245,972 or 253% in 2018 compared to a decrease of 

$451,387 or 18% in 2017; 

x Total net program costs increased $2,293,611 or 11% in 2018 compared to an 

increase of $1,037,822 or 5% in 2017; 

x Financing sources of operations increased $2,267,023 or 11% in 2018 compared to an 

increase of $1,053,215 or 5% in 2017; and 

x Net position increased $6,062,759 or 13% in 2018 compared to an increase of 

$9,213,925 or 25% in 2017. 

Overview of the Financial Statements 

The Management’s Discussion and Analysis introduces DRA’s principal statements. The 

principal statements include: (1) balance sheets, (2) statements of net cost, (3) statements of 

changes in net position, (4) statements of resources (budgetary and non-budgetary), and (5) notes 

to financial statements. DRA also includes in this report additional information to supplement the 

principal statements. 

Balance Sheet – The balance sheet is a summary of assets, liabilities and net position for each 

fiscal year. It includes assets in possession or managed by the entity exclusive of items subject 

to stewardship reporting (assets), amounts owed by the entity (liabilities), and amounts which 

comprise the difference (net position). 

8
DELTA REGIONAL AUTHORITY 

MANAGEMENT’S DISCUSSION AND ANALYSIS

YEAR ENDED SEPTEMBER 30, 2018 

2018 2017 $ Change % Change

Total Assets $ 60,124,607 $ 48,815,876 $ 11,308,731 23%

Total Liabilities 7,317,471 2,071,499 5,245,972 253%

Unexpended appropriations/state funds 52,807,136 46,744,351 6,062,785 13%

Cumulative results of operations - 26 (26) -100%

Total Net Position 52,807,136 46,744,377 6,062,759 13%

Total Liabilities and Net Position $ 60,124,607 $ 48,815,876 $ 11,308,731 23%

Summary Balance Sheet - Changes

As of September 30,

The FY 2018 increase in total assets is largely attributable to federal appropriations for economic 

development purposes, while the FY 2017 increase is attributable to federal appropriations 

increasing while funding for older projects continued to be paid out year over year. Total 

liabilities increased in FY 2018 due to DRAs’ partnership with EDA during FY 2018. Net 

position increased in FY 2018 compared to FY 2017. The increase in net position is directly 

attributable to the EDA partnership. An increase in net position indicates that DRA’s financial 

condition has improved in FY 2018. 

Statements of Net Cost – The statements of net cost are designed to show separately the 

components of the net cost of the reporting entity’s operations for the period. The net cost of 

operations is the gross cost incurred by the reporting entity less any exchange revenue earned 

from its activities. The gross cost of a program consists of the full cost of the outputs produced 

by that program plus any non-production costs that can be assigned to the program (nonproduction costs are costs linked to events other than the production of goods and services). The 

net cost of a program consists of gross cost less related exchange revenues. By disclosing the 

gross and net cost of the entity’s programs, the statements of net cost provide information that 

can be related to the outputs and outcomes of the programs and activities. 

2018 2017 $ Change % Change

Program Costs

Gross Costs $ 25,049,217 $ 21,043,080 $ 4,006,137 19%

Less: Earned Revenue (1,712,526) (1,712,526) - 100%

Total Net Program Costs 23,336,691 $ $ 21,043,080 $ 2,293,611 11%

Summary Statement of Net Costs - Changes

Years Ended September 30,

The FY 2018 increase in total net program costs is attributable to an increase in EDA and 

SEDAP project disbursements. 

9
DELTA REGIONAL AUTHORITY 

MANAGEMENT’S DISCUSSION AND ANALYSIS

YEAR ENDED SEPTEMBER 30, 2018 

Statements of Changes in Net Position – The statements of changes in net position report the 

change in net position during the reporting period. Net position is affected by changes to its two 

components: cumulative results of operations and unexpended appropriations. The statement 

format is designed to display both components of net position separately to enable the user to 

better understand the nature of changes to net position as a whole. 

2018 2017 $ Change % Change

Unexpended Appropriations

Beginning Balance $ 46,744,351 $ 37,556,987 $ 9,187,364 24%

Total Financing Sources 6,062,785 9,187,364 (3,124,579) -34%

Total Unexpended Appropriations $ 52,807,136 $ 46,744,351 $ 6,062,785 13%

Cumulative Results of Operations

Beginning Balance $ 26 (26,536) $ 26,562$ -100%

Total Financing Sources 23,336,665 21,069,642 2,267,023 11%

Cost of Operations 23,336,691 21,043,080 2,293,611 11%

Net Change (26) 26,562 (26,588) -100%

Total Cumulative Results of Operations - 26 -100% (26)

Net Position $ 52,807,136 $ 46,744,377 $ 6,062,759 13%

Years Ended September 30, 

Summary Statement of Changes in Net Position - Changes

The increase in total financing sources is related to an increase in disbursements of EDA and 

SEDAP funds expended in FY 2018 and an increase in SEDAP and RCAP funds in FY 2017. 

 

Statements of Resources (Budgetary and Non-Budgetary) – The statements of resources 

(budgetary and non-budgetary) and related disclosures provide information about how budgetary 

resources were made available, as well as their status at the end of the year. It is the only 

financial statement predominantly derived from an entity’s budgetary general ledger in 

accordance with budgetary accounting rules, which are incorporated into generally accepted 

accounting principles (GAAP) in the United States of America for the federal government. 

10
DELTA REGIONAL AUTHORITY 

MANAGEMENT’S DISCUSSION AND ANALYSIS

YEAR ENDED SEPTEMBER 30, 2018 

2018 2017 $ Change % Change

Total Resources (Budgetary & Non-Budgetary) $ 39,718,713 $ 33,446,330 $ 6,272,383 19%

Total Status of Budgetary Resources $ 36,669,857 $ 28,333,736 $ 8,336,121 29%

Net Outlays, End of Year $ 18,381,150 $ 16,061,792 $ 2,319,358 14%

Total Unpaid Obligated Balance, Net $ 51,662,245 $ 47,499,884 $ 4,162,361 9%

Summary Statement of Resources - Changes

Years Ended September 30,

(Budgetary & Non-Budgetary)

The increase in FY 2018 is due to a transfer of appropriation from EDA. 

Notes to Financial Statements – The notes to financial statements are an integral part of the 

financial statements and provide more detailed data. 

Limitations of the Financial Statements 

The principal financial statements have been prepared to report the financial position and results 

of operations of the entity, pursuant to the requirements of 31 U.S.C. 3515(b). While the 

statements have been prepared from the books and records of the entity in accordance with 

GAAP for federal entities and the formats prescribed by the President’s Office of Management 

and Budget, the statements are, in addition to the financial reports, used to monitor and control 

budgetary resources, which are prepared from the same books and records. 

Audit Opinion: Unmodified

Restatement: No

Material Weakness(es) Beg. Balance New Resolved Consolidated Ending Balance

Total Material Weaknesses - - - - -

Year Ended September 30, 2018

Summary of Financial Statement Audit

Grants Oversight & New Efficiency (GONE) Act 

The objective of the Grants Oversight and New Efficiency (GONE) Act is to identify and close 

out expired grants. The covered grants are those within an agency’s cash payment management 

system that have been expired for two or more years and have not been closed out. 

DRA reviewed its close-out population of federal grants and cooperative agreements and found 

instances where either a grant award or cooperative agreement with the period of performance 

11
DELTA REGIONAL AUTHORITY 

MANAGEMENT’S DISCUSSION AND ANALYSIS

YEAR ENDED SEPTEMBER 30, 2018 

ending on or prior to September 30, 2016 had not been closed out. Delays in grant and 

cooperative agreement closeout, and challenges to be address pursuant to the GONE Act follow 

the table below. 

Category No. of 2-3 Years No. of >3-5 Years No. of >5 Years

Grants/Cooperative Agreements

 with Zero Balances: - -$ - -$ - -$ 

Grants/Cooperative Agreements

with Undisbursed Balances: 715,507 38 526,111 17 - - 

Totals 715,507 38 $ 526,111$ 17 - -$ 

Summary of Grants Oversight & New Efficiency (GONE) Act

As of September 30, 2018

Challenges 

Challenges leading to delays in grant and cooperative agreement award closeout: As noted in 

DRA's enabling legislation, "Congress finds that certain States and local communities of the 

region, including local development districts, may be unable to take maximum advantage of 

Federal grant programs for which the States and communities are eligible because: (1) the States 

or communities lack the economic resources to provide the required matching share; or (2) there 

are insufficient funds available under the applicable Federal law authorizing the Federal grant 

program to meet pressing needs of the region." These limitations are often the reason DRA funds 

are needed as first dollars in on some of these grants. These limitations speak to other intrinsic 

limitations some of these communities’ experience, that being, other resources to ensure the 

projects are completed on time and on budget. Another challenge identified has been the various 

ways DRA has obligated funds over the course of three administrations. First administration 

obligated with a signed grant agreement; second administration obligated with a board approved 

(voted on) project. Typically grant agreements were signed and returned soon after, but there 

have been occasions where the signed grant agreement took much longer to return. This issue is 

exacerbated by an extremely small administrative staff with little continuity over DRA's first 17 

years of existence. 

Planned Corrective Actions 

Planned corrective actions to address these challenges: DRA will address the staffing situation 

to divide administrative tasks proportionally. There are still a great number of grants and 

cooperative agreements but more could be done to claw back unused and underutilized funding. 

Secondly, DRA will be looking to purchase an accounting system which will accommodate 

financial accounting for both DRA administrative costs and grant funding. Next, DRA will have 

to better train our Local Development Districts to identify earlier, projects with the potential to 

close out early and how to notify DRA to start that process sooner. Likewise, DRA will need to 

further educate our board members about why certain projects would be too risky to approve and 

refocus their attention on projects that are capable of moving faster. Lastly, the demographics of 

the Delta region must be taken into consideration and the inherent challenges that exist here. 

Some leeway must be given to these communities that struggle to obtain federal funds. 

12
DELTA REGIONAL AUTHORITY 

MANAGEMENT’S DISCUSSION AND ANALYSIS

YEAR ENDED SEPTEMBER 30, 2018 

Management Assurance of Controls and Legal Compliance

Statement of Assurance:

Material Weakness(es) Beg. Balance New Resolved Consolidated Reassessed Ending Balance

Total Material Weaknesses - - - - - -

Statement of Assurance:

Material Weakness(es) Beg. Balance New Resolved Consolidated Reassessed Ending Balance

Total Material Weaknesses - - - - - -

Statement of Assurance: 

Non-Compliance Beg. Balance New Resolved Consolidated Reassessed Ending Balance

Total - - - - - -

1. Federal Financial Management 

 Systems Requirements

2. Applicable Federal

Accounting Standards

3. USSGL at Transaction Level

No lack of compliance noted. No lack of compliance noted.

No lack of compliance noted. No lack of compliance noted.

Federal Systems comply with financial management system requirements.

Compliance with Section 803(a) of the Federal Financial Management Improvement Act(FMFIA)

Agency Auditor

No lack of compliance noted. No lack of compliance noted.

Effectiveness of Internal Control over Financial Reporting (FMFIAs2)

Unmodified

Effectiveness of Internal Control over Operations (FMFIAs2)

Unmodified

Compliance with Federal Financial Management System Requirements (FMFIAs4)

The Anti-Deficiency Act 

Public Law 31 USC S 1341, Limitations on Expending and Obligating Amounts, 31 USC S 

1342, Limitation on Voluntary Services, and 31 USC S 1517, Prohibited Obligations and 

Expenditures, and 31 USC S 1501, Documentary Evidence Requirement for Government 

Obligations make up the core of this Act. 

x 31 USC, Section 1341, Limitations on Expending and Obligating Amounts 

o An officer or employee of the U.S. Government or of the District of Columbia 

government may not--- 

 (A) make or authorize an expenditure or obligation exceeding an amount 

available in an appropriation or fund for the expenditure or obligation; 

13
DELTA REGIONAL AUTHORITY 

MANAGEMENT’S DISCUSSION AND ANALYSIS

YEAR ENDED SEPTEMBER 30, 2018 

 (B) involve either government in a contract or obligation for the payment of 

money before an appropriation is made unless authorized by law; 

x 31 USC, Section 1342, Limitation on Voluntary Services 

o An officer or employee of the U.S. Government or of the District of Columbia 

government may not accept voluntary services for either government or employ 

personal services exceeding that authorized by law except for emergencies involving 

the safety of human life or the protection of property. 

x 31 USC, Section 1517, Prohibited Obligations and Expenditures 

o (a) An officer or employee of the U.S. Government or of the District of Columbia 

government may not make or authorize an expenditure or obligation exceeding--- 

 (1) an apportionment; or 

 (2) the amount permitted by regulations prescribed under section 1514(a) 

of this title; 

x 31 USC, Section 1501, Documentary Evidence Requirement for Government Obligations 

o An amount shall be recorded as an obligation of the U.S. Government only when 

supported by documentary evidence of- 

 A binding agreement 

 A loan agreement 

 Order required by law 

 A grant or subsidy 

 A liability from litigation 

 Employment of persons 

 Public utilities services 

 Other 

What is an Anti-Deficiency Act Violation? 

x Making or authorizing an obligation or expenditure: 

o In excess of an appropriation 

o Before an appropriation is made 

o In excess of an apportionment 

o In excess of agency regulations (e.g., allotment) 

o Accepting voluntary services (except in an emergency); employing personal 

services 

Violations of these rules will subject the officer or employee to: 

 Appropriate administrative discipline 

 Suspension from duty without pay 

 Removal from office 

Intentional violation of the Anti-Deficiency Act will subject the officer or employee to: 

 Fines up to $5,000 

 Imprisonment up to 2 years 

 Or both 

14
DELTA REGIONAL AUTHORITY 

MANAGEMENT’S DISCUSSION AND ANALYSIS

YEAR ENDED SEPTEMBER 30, 2018 

Reporting the violation 

 A violation report has to be prepared by the Head of the offending agency and sent to: 

o The President (through OMB) 

o The Speaker of the House 

o The President of the Senate 

o The Comptroller General 

 The violation report must contain: 

x Date, amount, account involved in violation 

x The name and position of the person responsible 

x Discipline imposed 

x Statement about the adequacy of administrative control system 

x Statement of actions taken to prevent it from ever happening again. 

For the year ended September 30, 2018, Delta Regional Authority complied with the AntiDeficiency Act. 

The Prompt Payment Act (PPA) 

The Prompt Payment Act was enacted to ensure the federal government makes timely payments. 

Bills are to be paid within 30 days after receipt and acceptance of material and/or services -orafter receipt of a proper invoice whichever is later. When payments are not made timely, interest 

should be automatically paid. The basic requirements of the PPA for government finance offices 

are to: 

 Date stamp all incoming invoices. 

 Make payments no earlier than 23 days and no later than 30 days from the invoice date. 

 Take discounts only within the terms offered. 

 Pay interest automatically when payment is late. 

 Report performance based on statistical sampling to the Office of Management and 

Budget. 

Procedures and Guidelines DRA uses to comply with the Prompt Payment Act 

Mandatory IMP AC (government credit card program) for all purchases less than $2,500 may 

eliminate hours of collection time on smaller dollar invoices. Under the current VISA card 

program, vendors are paid usually within 2-3 days of shipment of the order. The merchant bank 

then collects from the government. The government purchase order is e-mailed to the vendor, 

input into their order processing system and then invoiced electronically to the payment office. 

When information is not re-keyed into systems, the chances for errors in the order and billing 

processes are reduced if not eliminated. 

Delta Regional Authority complies, in all relevant respects, with the Prompt Payment Act. 

Data Accountability and Transparency Act (DATA Act) of 2014 31 USC S6101, PL 113-101 

The purpose of the DATA Act is to establish government-wide financial data standards and 

increase the availability, accuracy, and usefulness of Federal spending information. The Act's 

vision was to provide reliable, timely, secure, and consumable financial management data for the 

purpose of promoting transparency, facilitating better decision making, and improving 

operational efficiency. 

15
DELTA REGIONAL AUTHORITY 

MANAGEMENT’S DISCUSSION AND ANALYSIS

YEAR ENDED SEPTEMBER 30, 2018 

Delta Regional Authority complied, with all material respects, with the DATA ACT and reported 

Information quarterly, as required during the fiscal year. 

Fraud Reduction Efforts 

Under the Fraud Reduction and Data Analytics Act (FRDAA) of 2015, agencies are required to 

report on efforts to reduce fraud. Standards require agencies to identify fraud risk factors and 

programs with increased susceptibility for fraud. The report must include information on the 

agency’s progress in implementing:

1. Financial and administrative controls established pursuant to the act, 

2. The fraud risk principle in the Standards for Internal Control in the Government, and OMB 

Circular A-123, Management’s Responsibility for Internal Control, with respect to leading 

practices for managing fraud risk, 

3. Progress in identifying risks and vulnerabilities to fraud, including with respect to payroll, 

beneficiary payments, grants, large contracts, purchase and travel cards, and 

4. Progress on establishing strategies, procedures, and other steps to curb fraud. 

Control Environment Risk Assessment Control Activities

Information & 

Communication Monitoring Activities

Demonstrates commitment to 

integrity & ethical values.

Define objectives & 

risk tolerances.

Designs control activities. Uses relevant, 

quality information.

Performs ongoing 

monitoring activities.

Exercises oversight 

responsibilities.

Identifies, analyzes, & 

responds to risk.

Selects and develops 

general system controls.

Communicates 

internally.

Evaluates issues and 

remediates deficiencies.

Establishes structure, 

authority, & responsibility.

Assess fraud risk. Deploys & implements 

control activities.

Communicates 

externally.

Demonstrates commitment to 

competence.

Identifies analyzes & 

respond to change.

Enforces accountability.

Framework of Internal Control

Year Ended September 30, 2018

DRA maintains an annual Financial Internal Control and Risk Management Plan that identifies, 

through quantitative and qualitative analysis, transactional areas that are susceptible to 

inaccuracies and/or fraud. The plan contains specific process areas that are tested throughout the 

fiscal year to ensure the process results are accurate and reasonable. For FY 2018, governmentissued travel card was identified as a program with a high risk for fraud. 

The following controls are in place to prevent/mitigate fraud within the government travel card 

program: 

x Reduce employee-held travel cards to $2,500, 

x A government credit card SOP is published defining the roles and rules of the program. 

The handbook is reviewed and updated as needed. 

16
DELTA REGIONAL AUTHORITY 

MANAGEMENT’S DISCUSSION AND ANALYSIS

YEAR ENDED SEPTEMBER 30, 2018 

The following administrative controls are in place to detect potential fraud within the travel card 

program: 

x The Senior Bookkeeper reviews purchase card holders’ statements and matches 

supporting receipts to billed charges monthly and communicates with cardholders 

regarding unmatched or suspicious charges. When cardholders deny unmatched or 

suspicious charges the Accounting Supervisor refer such charges to the Director of 

Finance & Administration for review and disposition, 

x The Director of Finance & Administration rejects payments for unknown or suspicious 

charges and requests the bank to investigate those purchases deemed suspect, 

x After an investigation, the bank either provide copies of receipts to prove the employee 

initiated the charge or issue credit to the cardholder. 

Other areas reviewed for the annual Financial Internal Control and Risk Management Plan 

include: 

x Payroll, and how fraud could be perpetuated through the time management system. The 

Accounting/HR Supervisor prepares the payroll for submission to the Director of 

Finance/Administration bi-weekly who reviews the submission for changes of personnel 

or salary from the prior month and budget and compares names to authorized personnel 

and salaries to authorized/approved salaries. 

x Contracts over $25,000, and how procurement procedures can be manipulated through 

fraud. 

Below are additional strategies, procedures, and other steps employed by the agency to curb 

fraud: 

x Prevent – establish an independent audit committee consisting of a board member, 

x Prevent – conduct detailed fraud risk assessments to focus management attention, 

x Deter/Detect – Promote effective reporting tools for suspicious or inappropriate activities 

(whistleblower hotline), 

x Anti-Fraud Policy/Training – communicate a policy and train employees to recognize 

suspicious or inappropriate activities, 

x Deter/Detect – Response to fraud allegations of how it will be investigated/resolved. 

DRAs’ senior management believes that this policy sends a clear message that senior 

management is committed to preventing and detecting fraud committed against the organization. 

Contacting DRA’s Financial Management

This financial report is designed to fulfill the obligations of DRA as it relates to the 

Accountability for Tax Dollars Act of 2002. The report details the financial position of DRA as 

of September 30, 2018 and 2017, and demonstrates DRA’s accountability for all funds and 

appropriations received. 

If you have any questions about this report or need additional information, please contact the 

Delta Regional Authority via telephone by calling (662) 624-8600 or mail by directing inquiries 

to the Director of Finance & Administration, Delta Regional Authority, 236 Sharkey Ave, #400, 

Clarksdale, MS 38614. 

17
DELTA REGIONAL AUTHORITY 

MANAGEMENT’S DISCUSSION AND ANALYSIS

YEAR ENDED SEPTEMBER 30, 2018 

Other Contact/Reports: 

Internet Home Page http://dra.gov

Fraud/Whistleblower http://dra.gov/accountability/promoting-a-transparent-government/#fraud

Agency Financial Report http://dra.gov/accountability/promoting-a-transparent-government/

Strategic Plan http://dra.gov/funding-programs/strategic-economic-development-plans-by-state/

18
SECTION 2 - PERFORMANCE REPORT 
DELTA REGIONAL AUTHORITY 

PERFORMANCE REPORT 

YEAR ENDED SEPTEMBER 30, 2018 

Overview 

The Government Performance and Results Act of 1993 ("GPRA") requires all federal agencies to 

submit a report to Congress on actual program results at the end of each Fiscal Year along with 

its audited financial statements outlined in the Office of Management and Budget (OMB) 

Circular No. A-136, Financial Audit Manual. This report includes a summary of results on the 

following DRA programs and initiatives: 

Project Development and Management 

x States’ Economic Development Assistance Program (SEDAP)

o Community Infrastructure Fund (CIF) 

o Public Works and Economic Adjustment Assistance (PWEAA) Program 

x Local Development Districts (LDD) Training/Administration 

Programs and Initiatives 

x Delta Leadership Institute (DLI) 

x Delta Leadership Network (DLN) 

x Delta Doctors 

x Innovative Readiness Training (IRT) 

x Local Foods, Local Places (LFLP) 

x Healthy Places for Healthy People (HP2) 

Regional Development Plan III (RDP III) Strategic Goals 

In April 2016, DRA presented its third Regional Development Plan (RDP III) as an assessment 

of, and a response to, the region’s myriad opportunities, assets, and challenges. This plan serves 

to update the agency’s Regional Development Plan II (RDP II), originally adopted in 2008. The 

RDP III sets forth revised goals that will drive the DRA’s work through 2020, building on the 

successes of many of the DRA’s existing programs and setting new goals for the future. 

Goal 1: Improved Workforce Competitiveness. 

Advance the productivity and economic competitiveness of the Delta workforce. 

Access to a skilled workforce is a crucial factor affecting the ability of businesses to succeed in 

today’s economy, thus employers are notably drawn to locations with concentrations of skilled 

workers. As national demographic trends project a decline in the working-age population over 

the coming decades, employers will increasingly have difficulties finding skilled workers. Thus, 

one of the most urgent priorities for communities across the country is to develop a pipeline of 

talented workers to support the growth of existing and future employers. This is especially true 

for communities in the Delta region as they compete for businesses, jobs, and economic 

opportunities. 

19
DELTA REGIONAL AUTHORITY 

PERFORMANCE REPORT 

YEAR ENDED SEPTEMBER 30, 2018 

Goal 2: Strengthened Infrastructure. 

Strengthen the Delta’s physical, digital, and capital connections to the global economy.

High-functioning transportation networks and basic infrastructure (e.g. water, wastewater, 

electricity, and natural gas, and affordable broadband internet) are essential for the long-term 

success of resilient regional economies. While it will be important to maintain the Delta region’s 

existing infrastructure, there are also opportunities to make strategic investments in 

transportation and broadband infrastructure that will boost the region’s economic potential. It is 

also necessary for communities to have the appropriate real estate options and financing 

available to attract new businesses and take advantage of the economic development 

opportunities available to them. 

Goal 3: Increased Community Capacity. 

Facilitate local capacity building within Delta communities, organizations, and businesses. 

Strong local leadership in Delta communities is a prerequisite for the capacity building that will 

yield long-term economic prosperity for the region’s businesses and residents. Competitive and 

resilient communities are able to attract new jobs and investments and keep those jobs thanks in 

large part to their high level of engagement from community and business leaders. The 

development of a robust entrepreneurial environment is also important to the long-term success 

of the region. Entrepreneurs, innovative companies, creative workers, and technology are key 

elements of the regional economy. Finally, the overall quality of Delta communities has a major 

influence on their potential for economic development, providing an attractive environment that 

appeals to young professionals.

Project Development and Management 

States’ Economic Development Assistance Program (SEDAP) 

The States’ Economic Development Assistance Program is DRA’s primary investment program. 

Since 2002, DRA has leveraged more than $182 million of its own appropriations with more 

than $3.5 billion in other public and private sector dollars. SEDAP investments are subject to 

Federal Priority Eligibility Criteria and must help improve the following in Delta communities: 

x Basic Public Infrastructure 

x Transportation Infrastructure 

x Workforce Training and Education 

x Business Development and Entrepreneurship 

At least 50% of SEDAP funds must be invested in basic public infrastructure and transportation 

infrastructure. 

At least 75% of SEDAP funds must be invested in economically distressed counties and 

parishes. 

20
DELTA REGIONAL AUTHORITY 

PERFORMANCE REPORT 

YEAR ENDED SEPTEMBER 30, 2018 

Community Infrastructure Fund (CIF) 

The Community Infrastructure Fund helps strengthen the economic viability of Delta 

communities. In FY 2018, DRA invested $10 million in projects addressing flood control, basic 

public infrastructure, and local transportation improvements that enhance local and regional 

economies throughout the Delta region. 

Public Works and Economic Adjustment Assistance Program (PWEAA) 

In FY 2018, the U.S. Department of Commerce Economic Development Administration made $3 

million of its Public Works and Economic Adjustment Assistance program available to DRA. 

This program supports rural communities by investing in projects that leverage existing regional 

assets and the implementation of community development strategies that advance economic 

prosperity in distressed regions. 

In FY 2018, DRA, through its available funding programs, invested $24,673,382 of its available 

funds into 88 projects in its eight-state region. These investments combined with $108,679,206 

in other federal, state and local funds – a ratio of 4.4 to 1 for a total project investment of 

$133,352,588. Additionally, DRA's investments include private investments totaling 

$866,293,259 a ratio of 35.1 to 1. Ultimately, DRA funded projects include $974,972,465 in 

other public and private investments for a total investment ratio of 39.5 to 1. 

With these investments, DRA’s FY 2018 funding programs are expected to help achieve the

following results: 

x Provide 149,749 families with access to improved water and sewer; 

x Train 8,857 individuals for a 21st century workforce; and 

x Create and retain 5,228 jobs. 

Goal 2: Strengthened Infrastructure. 

Strengthen the Delta’s physical, digital, and capital connections to the global economy. 

Aligned with DRA’s Regional Development Plan III: Goal 2 – Strengthened Infrastructure, 

SEDAP, CIF and PWEAA collectively direct public and private investments into basic public 

infrastructure and transportation projects that can facilitate business expansion, company 

relocation, and job growth in Delta communities. 

Local Development Districts (LDD) Training/Administration 

Per DRA's statute, local development districts (LDDs) are the Authority's front-line project 

developers and managers. The LDDs within the DRA footprint provide technical assistance, 

application support and review, and other services to DRA and the entities in their districts 

wishing to apply for DRA funding. LDDs help identify effective and impactful economic 

development projects for consideration for DRA investment. All projects, regardless of the 

funding source, are developed in coordination with the appropriate LDD. LDD staff review and 

certify that each project is legitimate and meets the parameters of DRA programs. 

Based on decisions made by DRA leadership, LDDs who are out of compliance with 

certification requirements are ineligible to submit applications for DRA funding. These 

21
DELTA REGIONAL AUTHORITY 

PERFORMANCE REPORT 

YEAR ENDED SEPTEMBER 30, 2018 

compliance requirements have helped ensure consistent improvements in the quality of 

applications over time. Guidance is given annually during the LDD training workshop and 

provided publicly in DRA’s administrative program manual.

Due to the delay in the confirmation of DRA’s federal co-chairman, the annual LDD training 

was conducted via conference call and webinar in February 2018. Leadership intends to bring 

the LDDs together once again, in January or February 2019 to lay out changes to DRA’s funding 

programs and monitoring and compliance requirements. This training reinforces good grant 

administration policies and is intended to result in improved applications and grants 

management. These actions help ensure DRA stakeholders are receiving the most up to date 

technical assistance from their LDD when applying for DRA funding. 

Goal 3: Increased Community Capacity. 

Facilitate local capacity building within Delta communities, organizations, businesses, and 

individuals. 

Aligned with DRA’s Regional Development Plan III: Goal 3 – Increased Community Capacity, 

DRA’s annual LDD Training/Administration provides executive directors and project 

development staff with best practices, innovative strategies and resources to boost the economic 

development potential of their regional footprints. 

Programs and Initiatives 

Delta Leadership Institute (DLI) 

Founded in 2005, the Delta Leadership Institute (DLI) supports local economic development by 

building leadership skills and fostering collaboration among established community leaders in 

the public, private, and nonprofit sectors to improve the economic and social opportunities of the 

Delta region and its people. DLI relies on the administrative, programming, and curricular 

support from a consortium of three university partners: The University of Alabama, Arkansas 

State University, and the University of Louisiana at Monroe. 

The year-long DLI Executive Academy is designed to provide professional leadership 

development and policy training in the issues most challenging to Delta communities. The 

Executive Academy held six sessions in 2018 that focused on transportation and infrastructure, 

public health and education, small business and entrepreneurship, culture and tourism, and public 

policy and innovative partnerships. The Delta Leadership Institute graduated 48 fellows from its 

thirteenth class in July 2018. 

Delta Leadership Network (DLN) 

The Delta Leadership Network comprises the alumni of the Executive Academy and is tasked 

with maintaining these relationships among regional leaders so as to foster regional 

collaboration, resource sharing, and continued education to help these leaders address the Delta’s 

most pressing issues. Now more than 500 community leaders make up the DLN, through which 

they continue their engagement with the Delta Leadership Institute at state meetings, an annual 

Delta Leadership Network conference, and events with new Executive Academy classes. 

22
DELTA REGIONAL AUTHORITY 

PERFORMANCE REPORT 

YEAR ENDED SEPTEMBER 30, 2018 

In February 2018, the DLN hosted its fifth annual conference in Memphis, TN, bringing together 

175 members, partners, and prospective DLI fellows together. Staying Ahead of the Curve: The 

Next Generation Delta Workforce allowed a deep dive into the current programs and strategies 

working in Delta communities to address workforce needs and training challenges. The summer 

state meetings brought opportunities to learn from economic development professionals from 

each state. 

Goal 3: Increased Community Capacity. 

Facilitate local capacity building within Delta communities, organizations, businesses, and 

individuals. 

Aligned with DRA’s Regional Development Plan III: Goal 3 – Increased Community Capacity, 

DLI and DLN supports a wide array of leaders across the region through the Executive 

Academy, DLN conference, and continuing education programs. 

Delta Doctors 

In an effort to increase the number of doctors serving Delta residents, the Delta Regional 

Authority began implementing the Delta Doctors program in 2003. The program allows foreign 

physicians who are trained in the US to work in medically underserved areas for three years by 

providing those physicians with J-1 Visa Waivers. Most choose to stay far longer once they 

develop a patient base. Those in the Delta Doctors program do not take jobs away from 

physicians born in the United States. Instead, they provide services in areas where there would 

otherwise be a shortage of physicians. 

The impact of Delta Doctors in the region is realized both by access to quality affordable 

healthcare and the economic impact the doctors make on the community in which they reside 

and practice. On average, each doctor participating in the program is estimated to create 5 fulltime jobs within their clinics and offices, and an additional 3 to 4 full and part-time jobs within 

the communities where they work. 

Since January 2018, DRA has processed 106 J-1 Visa Waiver applications and has approved 101 

applicants to be placed in a medically underserved area within the 252 counties and parishes 

making up the DRA service area. 

Goal 1. Improved Workforce Competitiveness. 

Advance the productivity and economic competitiveness of the Delta workforce. 

Aligned with DRA’s Regional Development Plan III: Goal 1 – Improved Workforce 

Competitiveness, Delta Doctors improves the health and wellness of the Delta’s workforce to 

elevate productivity and competitiveness of the region’s employers by providing Americantrained, foreign physicians to health professional shortage areas (HPSA) and medically 

underserved areas (MUA).

Innovative Readiness Training 

Throughout nine years of partnership, the Delta Regional Authority and the Department of 

Defense (DOD) have collaborated to bring the Innovative Readiness Training (IRT) program to 

the Mississippi River Delta and Alabama Black Belt regions. IRT medical missions deliver 

quality medical care, provided by licensed medical professionals serving in our reserve forces, to 

23
DELTA REGIONAL AUTHORITY 

PERFORMANCE REPORT 

YEAR ENDED SEPTEMBER 30, 2018 

residents of rural communities that otherwise have little to no access to quality health care. All of 

these services are provided at no cost to the community and patients. IRT clinics operate for a 

temporary time frame (i.e. typically 10-14 days) during which patients can receive general 

medical, dental, and optical care for themselves and their family members, all of which are high 

demand health care needs in the Delta. No proof of identification, income, residency or insurance 

is required. 

Each mission will provide medical services including, but not limited to, general medical, dental 

and optical care. Services will be provided on a first-come, first-serve basis with each location 

providing services that benefit those in the communities that are underserved and in need of 

medical attention. The expectation is that each mission will provide care to between four and five 

thousand patients in the region. So far, in nine years of partnership, DRA and DOD are proud to 

have delivered free medical care to more than 90,000 patients in Delta communities. 

DRA hosted two IRT programs in Summer 2018, bringing medical, dental, and optical care to 

Delta residents that are uninsured or underinsured and in need of quality healthcare at no cost to 

the patient. A list of events follows: 

Monroeville and Thomasville, Alabama | May 28-June 4, 2018 

x Total Patient Count: 3,548 

x Glasses Distributed: 356 

x Teeth Extracted: 577 

x Estimated Benefit to Community: $650,000-$900,000 

Harrisburg, Illinois | June 18-28, 2018 

x Total Patient Count: 1,085 

x Glasses Distributed: 453 

x Teeth Extracted: 489 

x Benefit to Community: $269,090 

o Medical: $26,520 

o Dental: $210,250 

o Optometry: $30,300 

o Pharmacy: $2,020 

Goal 1: Improved Workforce Competitiveness. 

Advance the productivity and economic competitiveness of the Delta workforce. 

Aligned with DRA’s Regional Development Plan III: Goal 1 – Improved Workforce 

Competitiveness, IRT medical missions promote partnerships between federal, state and local 

agencies to provide no-cost health care services to underserved populations throughout the Delta 

region. 

Local Foods, Local Places (LFLP) 

First announced in June 2014 during a White House Rural Council meeting in Washington, DC, 

the Local Foods, Local Places (LFLP) program aims to boost economic opportunities for local 

farmers and businesses, to improve access to healthy foods, and to revitalize downtowns and 

traditional neighborhoods by supporting farmers markets, food hubs, community gardens, and 

community kitchens and improving accessibility of these amenities. The program helps the 

24
DELTA REGIONAL AUTHORITY 

PERFORMANCE REPORT 

YEAR ENDED SEPTEMBER 30, 2018 

awarded communities improve their livability by promoting economic development, preserving 

rural lands and increasing access to locally grown food. 

Four federal partners jointly fund and support the LFLP program: the U.S. Department of 

Agriculture (USDA), the U.S. Environmental Protection Agency (EPA), the Centers for Disease 

Control and Prevention (CDC), and the Delta Regional Authority (DRA). Project plans among 

the communities receiving LFLP awards include goals to create local food networks, establish 

regional food innovation centers, and develop job training efforts around local food 

entrepreneurship. 

2018 LFLP Delta Communities 

x Helena, Arkansas: The Helena-West Helena/Philips County Port Authority plans to 

create a local farmers market and events space in a long-abandoned school bus repair 

facility acquired by the Port Authority to encourage continued downtown investment. 

x McCrory, Arkansas: The City of McCrory is addressing barriers to good nutrition and 

physical activity by connecting and integrating multiple efforts including a new 

community/school garden; a new “healthy hub” serving as a healthy lifestyle anchor by 

providing health screenings, nutrition education, prescription assistance, and food pantry; 

and a potential farmers market and culinary incubator. 

x Duck Hill, Mississippi: Working with the town of Duck Hill, Action Communication 

and Education Reform is using green infrastructure to address storm water and flooding 

problems to enable revitalization efforts, including a 2.5-acre community garden and 

downtown farmers market. 

Goal 3: Increased Community Capacity. 

Facilitate local capacity building within Delta communities, organizations, businesses, and 

individuals. 

Aligned with DRA’s Regional Development Plan III: Goal 3 – Increased Community Capacity, 

LFLP supports the region’s farmers and farmers markets, revitalizes Delta communities, and 

increases access to locally grown foods all of which further enrich the quality of place of Delta 

communities. 

Healthy Places for Healthy People (HP2) 

As part of the Healthy Places for Healthy People initiative, DRA works with six federal partners 

– U.S. Health Resources & Services Administration (HRSA), U.S. Department of Agriculture 

(USDA), U.S. Environmental Protection Agency (EPA), U.S. Department of Transportation 

(DOT), U.S. Centers for Disease Control and Prevention (CDC), and Appalachian Regional 

Commission (ARC) – to engage community leaders and healthcare partners to create physically 

and economically healthy communities through improving access to local healthcare facilities, 

connecting workforce, economic development, and healthcare professionals to use healthcare as 

an economic driver, and fostering healthy lifestyles by increasing access to fresh, healthy, and 

local foods, while supporting local economic revitalization efforts. In 2018, two Delta 

communities were selected to participate in the HP2 initiative and each received a $15,000 

implementation grant from DRA to support their respective projects. 

25
DELTA REGIONAL AUTHORITY 

PERFORMANCE REPORT 

YEAR ENDED SEPTEMBER 30, 2018 

2018 HP2 Delta Communities 

x Bunkie, LA: The City of Bunkie, Move Bunkie Forward, and Bunkie General Hospital 

are using main street revitalization strategies and health improvement initiatives to 

support economic development efforts and improved human health and leverage recent 

state investments in the community. 

x Livingston, AL: The City of Livingston and the University of West Alabama are 

collaborating to develop health and wellness initiatives in downtown Livingston, 

increasing availability of wellness opportunities, including natural resource areas and 

health education, and supporting access to local food alternatives, while increasing 

interest in downtown revitalization efforts. 

Goal 3: Increased Community Capacity. 

Facilitate local capacity building within Delta communities, organizations, businesses, and 

individuals. 

Aligned with DRA’s Regional Development Plan III: Goal 3 – Increased Community Capacity, 

HP2 enhances community capacity by providing technical assistance and resources to Delta 

communities seeking to accelerate their health and wellness initiatives and spur economic and 

community development. 

26
SECTION 3 – FINANCIAL SECTION
 105 West President Ave. • P.O. Box 894 • Greenwood, MS 38935 • P. 662-453-7112 • F. 662-453-7123 

Robert K. VanDevender, CPA 

Lance Mohamed, CPA

Stribling W. Hargett, CPA

W. Lee Mattox, CPA 

William A. Adams, CPA 

Gay G. Moss, CPA

Fred T. Neely, CPA 

(1897-1967)

Billy Joe Killebrew, CPA 

(1942-2010)

Ralph F. Neely, CPA 

(1927 - )

Independent Auditor’s Report

Federal and State Co-Chairs 

and Members of the Board 

Delta Regional Authority 

Clarksdale, Mississippi 

In our audit of the fiscal year 2018 financial statements of Delta Regional Authority (the Authority), we found 

x the Authority’s financial statements as of and for the fiscal year ended September 30, 2018, are presented 

fairly, in all material respects, in accordance with U.S. generally accepted accounting principles; 

x no material weaknesses in internal control over financial reporting based on the limited procedures we 

performed; and 

x no reportable noncompliance for fiscal year 2018 with provisions of applicable laws, regulations, contracts, 

and grant agreements we tested. 

The following sections discuss in more detail (1) our report on the financial statements, required supplementary 

information (RSI) and other information included with the financial statements; (2) our report on internal control 

over financial reporting; and (3) our report on compliance with laws, regulations, contracts, and grant agreements. 

Report on the Financial Statements 

In accordance with auditing standards generally accepted in the United States of America and the standards 

applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of 

the United States, and Office of Management and Budget (OMB) Bulletin No. 17-03, Audit Requirements for 

Federal Financial Statements, we have audited the Authority’s balance sheet as of September 30, 2018; the 

related statements of net cost, changes in net position, and budgetary resources for the fiscal year then ended; and 

the related notes to the financial statements. 

We conducted our audit in accordance with U.S. generally accepted government auditing standards. We believe 

that the audit evidence we obtained is sufficient and appropriate to provide a basis of our audit opinion. 

Management’s Responsibility

Authority management is responsible for (1) the preparation and fair presentation of these financial statements in 

accordance with U.S. generally accepted accounting principles; (2) preparing, measuring, and presenting the RSI 

in accordance with U.S. generally accepted accounting principles; (3) preparing and presenting other information 

included in documents containing the audited financial statements and auditor’s report, and ensuring the 

consistency of that information with the audited financial statements and the RSI; and (4) maintaining effective 

internal control over financial reporting, including the design, implementation, and maintenance of internal 

control relevant to the preparation and fair presentation of financial statements that are free from material 

misstatement, whether due to fraud or error. 

27
Auditor’s Responsibility 

Our responsibility is to express an opinion on these financial statements based on our audit. U.S. generally 

accepted government auditing standards require that we plan and perform the audit to obtain reasonable 

assurance about whether the financial statements are free from material misstatement. We are also responsible 

for applying certain limited procedures to RSI and other information included with the financial statements. 

An audit of financial statements involves performing procedures to obtain audit evidence about the amounts and 

disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the 

auditor’s assessment of the risks of material misstatement of the financial statements, whether due to fraud or 

error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation 

and fair presentation of the financial statements in order to design audit procedures that are appropriate in the 

circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal 

control. Accordingly, we express no such opinion. An audit of financial statements also involves evaluating the 

appropriateness of the accounting policies used and the reasonableness of significant accounting estimates made 

by management, as well as evaluating the overall presentation of the financial statements. Our audit also 

included performing such other procedures as we considered necessary in the circumstances. 

Opinion on Financial Statements 

In our opinion, the Authority’s financial statements present fairly, in all material respects, the Authority’s 

financial position as of September 30, 2018, and its net cost of operations, changes in net position, and budgetary 

resources for the fiscal year then ended in accordance with U.S. generally accepted accounting principles. 

Prior Period Financial Statements 

The financial statements of the Authority as of September 30, 2017, were audited by other auditors whose report 

dated January 2, 2018, expressed an unmodified opinion on those statements. 

Other Matters 

Required Supplementary Information 

U.S. generally accepted accounting principles issued by the Federal Accounting Standards Advisory Board 

(FASAB) require that the RSI be presented to supplement the financial statements. Although the RSI is not a 

part of the financial statements, FASAB considers this information to be an essential part of financial reporting 

for placing the financial statements in appropriate operational, economic, or historical context. We have 

applied certain limited procedures to the RSI in accordance with U.S. generally accepted government auditing 

standards, which consisted of inquiries of management about the methods of preparing the RSI and comparing 

the information for consistency with management’s responses to the auditor’s inquiries, the financial 

statements, and other knowledge we obtained during the audit of the financial statements, in order to report 

omissions or material departures from FASAB guidelines, if any, identified by these limited procedures. We 

did not audit and we do not express an opinion or provide any assurance on the RSI because the limited 

procedures we applied do not provide sufficient evidence to express an opinion or provide any assurance. 

Other Information 

The Authority’s other information contains a wide range of information, some of which is not directly related 

to the financial statements. This information is presented for purposes of additional analysis and is not a 

required part of the financial statements or the RSI. We read the other information included with the financial 

statements in order to identify material inconsistencies, if any, with the audited financial statements. Our audit 

was conducted for the purpose of forming an opinion on the Authority’s financial statements. We did not audit 

and do not express an opinion or provide any assurance on the other information. 

28
Internal Control over Financial Reporting 

In connection with our audit of the Authority’s basic financial statements, we considered the Authority’s internal 

control over financial reporting, consistent with our auditor’s responsibility discussed below. We performed our 

procedures related to the Authority’s internal control over financial reporting in accordance with U.S. generally 

accepted auditing standards. 

Management’s Responsibility

The Authority’s management is responsible for maintaining effective internal control over financial reporting, 

including the design, implementation, and maintenance of internal control relevant to the preparation and fair 

presentation of financial statements that are free from material misstatement, whether due to fraud or error. 

Auditor’s Responsibility

In planning and performing our audit of the Authority’s financial statements as of and for the year ended 

September 30, 2018, in accordance with the U.S. generally accepted government auditing standards, we 

considered the Authority’s internal control over financial reporting as a basis for designing audit procedures that 

are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not 

for the purpose of expressing an opinion on the effectiveness of the Authority’s internal control over financial 

reporting. Accordingly, we do not express an opinion on the effectiveness of the Authority’s internal control over 

financial reporting. We are required to report all deficiencies that are considered to be significant deficiencies or 

material weaknesses. We did not consider all internal controls relevant to operating objectives, such as those 

controls relevant to preparing performance information and ensuring efficient operations. 

Definition and Inherent Limitations of Internal Control over Financial Reporting 

An entity’s internal control over financial reporting is a process effected by those charged with governance, 

management, and other personnel, the objectives of which are to provide reasonable assurance that (1) 

transactions are properly recorded, processed, and summarized to permit the preparation of financial statements 

in accordance with U.S. generally accepted accounting principles, and assets are safeguarded against loss from 

unauthorized acquisition, use, or disposition, and (2) transactions are executed in accordance with provisions of 

applicable laws, including those governing the use of budget authority, regulations, contracts, and grant 

agreements, noncompliance with which could have a material effect on the financial statements. 

Because of its inherent limitations, internal control over financial reporting may not prevent, or detect and 

correct, misstatements due to fraud or error. 

Results of Our Consideration of Internal Control over Financial Reporting 

Our consideration of internal control was for the limited purpose described above, and was not designed to 

identify all deficiencies in internal control that might be material weaknesses and significant deficiencies or to 

express an opinion on the effectiveness of the Authority’s internal control over financial reporting. Given these 

limitations, during our audit, we did not identify any deficiencies in internal control over financial reporting that 

we considered to be material weaknesses. However, material weaknesses may exist that have not been identified. 

Intended Purpose of Report on Internal Control over Financial Reporting 

The purpose of this report is solely to describe the scope of our consideration of the Authority’s internal control 

over financial reporting and the results of our procedures, and not to provide an opinion on the effectiveness of 

the Authority’s internal control over financial reporting. This report is an integral part of an audit performed in 

accordance with U.S. generally accepted government auditing standards in considering internal control over 

financial reporting. Accordingly, this report on internal control over financial reporting is not suitable for any 

other purpose. 

29
Report on Compliance with Laws, Regulations, Contract, and Grant Agreements 

In connection with our audit of the Authority’s financial statements, we tested compliance with selected 

provisions of applicable laws, regulations, contracts, and grant agreements consistent with our auditor’s 

responsibility discussed below. We caution that noncompliance may occur and not be detected by these tests. We 

performed our tests of compliance in accordance with U.S. generally accepted government auditing standards. 

Management’s Responsibility

The Authority’s management is responsible for complying with laws, regulations, contracts, and grant 

agreements applicable to the Authority. 

Auditor’s Responsibility

Our responsibility is to test compliance with selected provisions of applicable laws, regulations, contracts, and 

grant agreements applicable to the Authority that have a direct effect on the determination of material amounts 

and disclosures in the Authority’s financial statements, and perform certain other limited procedures. 

Accordingly, we did not test compliance with all laws, regulations, contracts, and grant agreements applicable to 

the Authority. 

Results of Our Tests for Compliance with Laws, Regulations, Contracts, and Grant Agreements 

Our tests for compliance with selected provisions of applicable laws, regulations, contracts, and grant agreements 

disclosed no instances of noncompliance for fiscal year 2018 that would be reportable under U.S. generally 

accepted government auditing standards. However, the objective of our tests was not to provide an opinion on 

compliance with laws, regulations, contracts, and grant agreements applicable to the Authority. Accordingly, we 

do not express such an opinion. 

Intended Purpose of Report on Compliance with Laws, Regulations, Contracts, and Grant Agreements 

The purpose of this report is solely to describe the scope of our testing of compliance with selected provisions of 

applicable laws, regulations, contracts, and grant agreements, and the results of that testing, and not to provide an 

opinion on compliance. This report is an integral part of an audit performed in accordance with U.S. generally 

accepted government auditing standards in considering compliance. Accordingly, this report on compliance with 

laws, regulations, contracts, and grant agreements is not suitable for any other purpose. 

Fred T. Neely & Company, PLLC 

Fred T. Neely & Company, PLLC 

Greenwood, Mississippi 

November 12, 2018 

30
DELTA REGIONAL AUTHORITY

BALANCE SHEETS

SEPTEMBER 30, 2018 AND 2017

2018 2017

ASSETS

Intragovernmental:

Fund balance with Treasury $ 57,231,491 $ 47,592,322

Total intragovernmental 57,231,491 47,592,322

Cash 2,415,632 807,869

Accounts receivable, net 312,797 195,707

General property and equipment, net 164,687 219,978

TOTAL ASSETS $ 60,124,607 $ 48,815,876

LIABILITIES

Intragovernmental:

Other:

Employer contributions and payroll taxes payable $ 1,827 $ 2,524

Liability for advances and prepayments 4,120,542 232,065

Total intragovernmental 4,122,369 234,589

Accounts payable 2,630,697 1,286,949

Other:

Grants and other payables 492,880 480,835

Accrued funded payroll and leave 71,191 68,893

Employer contributions and payroll taxes payable 334 233

TOTAL LIABILITIES 7,317,471 2,071,499

NET POSITION

Unexpended appropriations - all other funds (consolidated 

totals) 52,807,136 46,744,351

Cumulative results of operations - all other funds (consolidated 

totals) - 26

TOTAL NET POSITION 52,807,136 46,744,377

TOTAL LIABILITIES AND NET POSITION $ 60,124,607 $ 48,815,876

The accompanying notes are an integral part of these statements. 

31
DELTA REGIONAL AUTHORITY

STATEMENTS OF NET COST

YEARS ENDED SEPTEMBER 30, 2018 AND 2017

2018 2017

PROGRAM COSTS

Council of Inspectors General on Integrity and 

Efficiency:

Gross costs $ 25,049,217 $ 21,043,080

Less: earned revenue 1,712,526 -

TOTAL NET PROGRAM COSTS 23,336,691 21,043,080

NET COST OF OPERATIONS $ 23,336,691 $ 21,043,080

The accompanying notes are an integral part of these statements. 

32
DELTA REGIONAL AUTHORITY

STATEMENTS OF CHANGES IN NET POSITION

YEARS ENDED SEPTEMBER 30, 2018 AND 2017

2018 2017

UNEXPENDED APPROPRIATIONS 

Beginning balance $ 46,744,351 $ 37,556,987

BUDGETARY FINANCING SOURCES 

Appropriations received 25,000,000 25,000,000

Appropriations used (20,275,963) (15,936,220)

OTHER FINANCING SOURCES (USES)

Cost of operations absorbed by member states and others 2,152,319 1,688,680

Cost of operations absorbed by RCAP 2,235,285 3,552,768

Disbursements of funds provided by member states and others (773,247) (1,622,353)

Disbursements of RCAP funds (2,275,609) (3,495,511)

TOTAL FINANCING SOURCES (USES) 6,062,785 9,187,364

TOTAL UNEXPENDED APPROPRIATIONS $ 52,807,136 $ 46,744,351

CUMMULATIVE RESULTS OF OPERATIONS

Beginning balance $ 26 $ (26,536)

BUDGETARY FINANCING SOURCES 

Appropriations used 20,275,963 15,936,221

OTHER FINANCING SOURCES

Imputed financing from costs absorbed by others 11,846 15,557

Disbursements of RCAP funds 2,275,609 3,495,511

Disbursements of funds provided by member states and others 773,247 1,622,353

TOTAL FINANCING SOURCES 23,336,665 21,069,642

NET COST OF OPERATIONS 23,336,691 21,043,080

NET CHANGE (26) 26,562

TOTAL CUMULATIVE RESULTS OF OPERATIONS - 26

NET POSITION $ 52,807,136 $ 46,744,377

The accompanying notes are an integral part of these statements. 

33
DELTA REGIONAL AUTHORITY

YEARS ENDED SEPTEMBER 30, 2018 AND 2017

Federal State and Other

Rural Community 

Assistance Program Eliminations Combined

Budgetary Non-Budgetary Non-Budgetary Non-Budgetary

Budgetary and 

Non-Budgetary

BUDGETARY RESOURCES

Unobligated balance from prior year budget 

authority, net (discretionary and mandatory) $ 3,524,380 $ 1,168,063 $ 37,663 $ - $ 4,730,106

Appropriations (discretionary and mandatory) 25,000,000 - - - 25,000,000

Spending authority from offsetting collections 

(discretionary and mandatory) 5,601,003 2,152,319 2,235,285 - 9,988,607

 -

TOTAL RESOURCES (BUDGETARY AND 

NON-BUDGETARY) $ 34,125,383 $ 3,320,382 $ 2,272,948 $ - $ 39,718,713

STATUS OF BUDGETARY RESOURCES

New obligations and upward adjustments (total) $ 28,270,283 $ - $ - $ - $ 28,270,283

Unobligated balances/unexpended funds, end of 

year

Apportioned, unexpired accounts 5,722,311 - - - 5,722,311

Unapportioned, unexpired accounts 132,789 - - - 132,789

Unexpired unobligated balance, end of year 5,855,100 - - - 5,855,100

Unexpended funds - 2,547,135 (2,661) - 2,544,474

Unobligated/Unexpended balance, end of year 5,855,100 2,547,135 (2,661) - 8,399,574

TOTAL BUDGETARY RESOURCES $ 34,125,383 $ 2,547,135 $ (2,661) $ - $ 36,669,857

CHANGE IN OBLIGATED BALANCES 

(MEMORANDUM (NON-ADD) ENTRIES

Unpaid obligated balance, net, beginning of year $ 47,242,566 $ 17,730 $ 239,588 $ - $ 47,499,884

New obligations and upward adjustments 28,270,283 773,247 2,275,609 - 31,319,139

Other (5,270) - - - (5,270)

Gross outlays (20,961,834) (700,340) (2,319,979) - (23,982,153)

Recoveries of prior year unpaid, obligations, 

actual (3,169,354) - - - (3,169,354)

Unpaid obligated balance, net, end of year -

Undelivered orders 48,528,103 - - - 48,528,103

Accounts payable 2,848,288 90,637 195,218 - 3,134,143

TOTAL OBLIGATED BALANCE, NET, END 

OF YEAR $ 51,376,391 $ 90,637 $ 195,218 $ - $ 51,662,246

OUTLAYS, NET

Outlays, net (total) (discretionary and mandatory) $ 15,360,831 $ (1,451,979) $ 84,694 $ - $ 13,993,546

Agency outlays, net (discretionary and mandatory) $ 15,360,831 $ (1,451,979) $ 84,694 $ - $ 13,993,546

2018

STATEMENTS OF RESOURCES (BUDGETARY AND NON-BUDGETARY)

The accompanying notes are an integral part of these statements. 

34
Federal State and Other

Rural Community 

Assistance Program Eliminations Combined

Budgetary Non-Budgetary Non-Budgetary Non-Budgetary

Budgetary and 

Non-Budgetary

$ 2,122,740 $ 1,101,736 $ (19,594) $ - $ 3,204,882

 25,000,000 - - - 25,000,000

 - 1,688,680 3,552,768 - 5,241,448

$ 27,122,740 $ 2,790,416 $ 3,533,174 $ - $ 33,446,330

$ 26,772,985 $ - $ - $ - $ 26,772,985

 355,025 - - - 355,025

 - - - - -

 355,025 - - - 355,025

 - 1,168,063 37,663 - 1,205,726

355,025 1,168,063 37,663 - 1,560,751

$ 27,128,010 $ 1,168,063 $ 37,663 $ - $ 28,333,736

$ 36,180,231 $ 101,701 $ 813,703 $ - $ 37,095,635

 26,772,985 1,622,353 3,495,511 - 31,890,849

 - - - - -

 (15,527,290) (1,706,324) (4,069,626) - (21,303,240)

 (183,360) - - - (183,360)

45,415,664 - - - 45,415,664

 1,826,902 17,730 239,588 - 2,084,220

$ 47,242,566 $ 17,730 $ 239,588 $ - $ 47,499,884

$ 15,527,290 $ 17,644 $ 516,858 $ - $ 16,061,792

$ 15,527,290 $ 17,644 $ 516,858 $ - $ 16,061,792

2017

The accompanying notes are an integral part of these statements. 

35
DELTA REGIONAL AUTHORITY 

NOTES TO FINANCIAL STATEMENTS 

SEPTEMBER 30, 2018 AND 2017 

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 

A. Reporting Entity 

The Delta Regional Authority (DRA or the Authority) is a federal-state partnership serving a 

252 county/parish area in an eight-state region. Led by a federal co-chairman and the 

governors of each participating state, DRA is designed to remedy severe and chronic economic

distress by stimulating economic development and fostering partnerships that will have a 

positive impact on the region’s economy. DRA helps economically distressed communities take 

advantage of other federal and state programs focused on basic infrastructure development and 

transportation improvements, business development and job training services. 

The Authority is a party to allocation transfers with other federal agencies as a transferring 

(parent) entity. Allocation transfers are legal delegations by one department of its authority 

to obligate budget authority and outlay funds to another department. A separate fund account 

(allocation account) is created in the U.S. Department of Treasury (Treasury) as a subset of the 

parent fund account for tracking and reporting purposes. All allocation transfers of balances are 

credited to this account, and subsequent obligations and outlays incurred by the child entity are 

charged to this allocation account as they execute the delegated activity on behalf of the parent 

entity. Generally, all financial activity related to these allocation transfers (e.g., 

budget authority, obligations, outlays) is reported in the financial statements of the parent entity 

from which the underlying legislative authority, appropriations and budget 

apportionments are derived. The Authority allocates funds, as the parent, to the United States 

Department of Agriculture (USDA) and the U.S. Economic Development Administration 

(EDA). 

B. Basis of Presentation and Accounting 

These basic statements have been prepared from the accounting records of DRA in accordance 

with accounting principles generally accepted in the United States of America (GAAP) and the 

form and content for entity financial statements specified by the President’s Office of 

Management and Budget (OMB) in OMB Circular No. A-136, Financial Reporting 

Requirements, as amended. GAAP, for federal entities, are standards prescribed by the 

Federal Accounting Standards Advisory Board (FASAB), which has been designated as the 

official accounting standards setting body for the federal government by the American Institute

of Certified Public Accountants (AICPA). 

OMB Circular No. A-136 requires agencies to prepare basic statements, which include a balance 

sheet, statement of net cost, statement of changes in net position and statement of 

resources (budgetary and non-budgetary). The balance sheets present, as of September 30, 2018 

and 2017, amounts of future economic benefits owned or managed by DRA (assets), 

amounts owed by DRA (liabilities), and amounts which comprise the difference (net position). 

The statements of net cost report the full cost of the program, both direct and indirect costs of 

the output, and the costs of identifiable supporting services provided by other segments within 

36
DELTA REGIONAL AUTHORITY 

NOTES TO FINANCIAL STATEMENTS 

SEPTEMBER 30, 2018 AND 2017 

DRA and other reporting entities. The statements of changes in net position reflect financing 

sources available to DRA, the cost of its operations and the net change in its financial position. 

The statements of resources (budgetary and non-budgetary) report an agency’s budgetary

activity. 

Transactions are recorded on both the accrual and budgetary basis. Under the accrual basis 

of accounting, revenues are recognized when earned, and expenses are recognized when a 

liability is incurred, without regard to receipt or payment of cash. Budgetary accounting 

facilitates compliance with legal constraints on, and control of, the use of federal funds. 

The accompanying balance sheets, statements of net cost and statements of changes in net 

position have been prepared on an accrual basis. The statements of resources (budgetary and 

non-budgetary) have been prepared in accordance with budgetary accounting rules. 

 

C. Management of Financial Records

Federal appropriations are managed for DRA by the General Services Administration (GSA). 

Using the government-wide standard general ledger system (SGL), accounting transactions are 

initiated at DRA and ultimately entered into the accounting records by GSA. These transactions 

are designated in the accompanying financial statements as “federal.”

DRA invoices and receives funds from the various member states to be used to 

pay administrative costs. This process meets the requirement of originating legislation which 

stipulates that “IN GENERAL - Administrative expenses of the Authority (except for the 

expenses of the federal co-chairperson, including expenses of the alternate and staff of 

the federal co-chairperson, which shall be paid solely by the federal government) shall be 

paid (A) by the federal government, in an amount equal to 50% of the administrative 

expenses; and (B) by the states in the region participating in the Authority, in an amount equal to

50% of the administrative expenses.” The funds received from the states are maintained in a 

local bank account, and transactions are initiated and managed by DRA staff. These transactions 

are designated in the accompanying financial statements as “State.”

D. Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make 

estimates and assumptions that affect the reported amount of assets and liabilities and disclosure 

of contingent assets and liabilities at the date of the financial statements and the 

reported amounts of revenues, expenses and other changes in net position during the reporting 

period. Actual results could differ from those estimates. 

37
DELTA REGIONAL AUTHORITY 

NOTES TO FINANCIAL STATEMENTS 

SEPTEMBER 30, 2018 AND 2017 

E. Revenues and Other Financing Sources 

DRA is a federal/state partnership and receives appropriations. Other financing sources for 

DRA consist of imputed financing sources which are costs financed by other federal entities on 

behalf of DRA, as required by Statement of Federal Financial Accounting Standard (SFFAS) 

No. 5, Accounting for Liabilities of the Federal Government. DRA also had a reimbursable 

agreement with the United States Department of Department of Agriculture during fiscal years 

2018 and 2017 and the Economic Development Authority during fiscal year 2018. 

F. Cash 

At September 30, 2018 and 2017, cash consisted of deposit accounts with various financial 

institutions. At September 30, 2018 and 2017, the Authority’s cash accounts were fully insured 

or otherwise collateralized. 

G. General Property and Equipment 

Property and equipment is stated at cost, less accumulated depreciation. DRA capitalizes 

property and equipment with an acquisition cost of $5,000 or more and a useful life exceeding 

two years. Depreciation is charged to expense using the straight-line method over the estimated 

useful life of five years for equipment. Leasehold improvements are amortized over the 

estimated period of occupancy or the life of the improvement, whichever is less. Expenditures 

for repairs and maintenance are charged to operating expense as incurred. 

H. Compensated Absences 

The Authority’s policies permit employees to accumulate annual and sick leave benefits that 

may be realized as paid time off. Expense and the related liability are recognized as annual 

leave benefits are earned. Sick leave benefits expected to be realized as paid time off are 

recognized as expense when the time off occurs, and no liability is accrued for such benefits 

employees have earned but not yet realized. The maximum accrual of annual leave is 240 hours, 

and there is no maximum accumulation of sick leave. Compensated absence liabilities for 

annual leave are computed using the regular pay and termination pay rates in effect at the 

balance sheet date, plus an additional amount for compensation-related payments such as Social 

Security, Medicare taxes and retirement computed using rates in effect at that date. 

I. Net Position

Net position is the residual difference between assets and liabilities and is comprised of 

unexpended appropriations and cumulative results of operations. Unexpended appropriations 

represent the amount of unobligated and unexpended budget authority. Unobligated balances are 

the amount of appropriations or other authority remaining after deducting the cumulative 

obligations from the amount available for obligation. The cumulative results of operations are the 

net results of the Authority’s operations since inception. 

38
DELTA REGIONAL AUTHORITY 

NOTES TO FINANCIAL STATEMENTS 

SEPTEMBER 30, 2018 AND 2017 

J. Net Cost of Operations

Earned revenues arise from the collection of state contributions and other inter-agency 

agreements are deducted from the full cost of the Authority’s major programs to arrive at net 

program cost. Earned revenues are recognized by the Authority to the extent reimbursements are 

payable from the public, as a result of costs incurred for services performed on the public’s 

behalf. 

K. Tax Exempt Status

As an instrumentality of the federal government, the Authority is exempt from income taxes 

imposed by any governing body whether it is a federal, state, commonwealth, local, or foreign 

government and exempt from sales and use taxes of the District of Columbia. 

NOTE 2 – FUND BALANCE WITH TREASURY 

DRA’s fund balance with Treasury comes from appropriations and the reimbursable agreement 

with the USDA and EDA. Funds with the U.S. Treasury represent obligated and unobligated noyear funds available to finance allowable current and future expenditures. A summary of DRA’s 

fund balance with Treasury follows: 

2018 2017

A. Fund Balance with Treasury 

General fund $ 57,231,491 $ 47,592,322

B. Status of Fund Balance with Treasury

(1) Unobligated Balance

(a) Available $ 5,722,312 $ 355,025

(b) Unavailable 132,789 -

(2) Obligated Balance not yet Disbursed 51,376,390 47,237,297

Total $ 57,231,491 $ 47,592,322

39
DELTA REGIONAL AUTHORITY 

NOTES TO FINANCIAL STATEMENTS 

SEPTEMBER 30, 2018 AND 2017 

NOTE 3 – ACCOUNTS RECEIVABLE, NET 

Receivables are substantially made up of amounts due from the USDA, which is a major 

granting agency for DRA, and the Rural Community Assistance Program (RCAP). At 

September 30, 2018, $163,048 was due from USDA for subgrantee expenses recorded in the 

financial statements as program costs; $31,458 was due from the public; and $118,291 was due 

from a parish in Louisiana for a recoup of an RCAP project where the subgrantee did not 

complete certain requirements to maintain eligibility under this program. This money is 

subsequently being remitted to the USDA. At September 30, 2017, $26 was due from current 

employees, $47,234 was due from USDA for administrative expenses and $148,447 was due 

from USDA for subgrantee expenses recorded in the financial statements as program costs. DRA 

has historically collected any receivables due and thus has not established an allowance for 

uncollectible accounts. 

NOTE 4 – GENERAL PROPERTY AND EQUIPMENT

General property and equipment balance consists of vehicles with a total cost of $255,995, 

accumulated depreciation of $91,308 and a net book value of $164,687 at September 30, 2018. 

Vehicles are depreciated over a five year estimated useful life. Depreciation expense for the fiscal 

year ended September 30, 2018 was $53,937. 

General property and equipment balance consists of vehicles with a total cost of $243,728, 

accumulated depreciation of $23,750 and a net book value of $219,978 at September 30, 2017. 

Vehicles are depreciated over a five year estimated useful life. Depreciation expense for the fiscal 

year ended September 30, 2017 was $23,750. 

NOTE 5 – FUNDS RECEIVED AS ASSESSMENTS FROM MEMBER STATES

Funds received as assessments from the various member states are maintained in DRA’s general 

bank account separate from all other cash. These assessments are included with cash in the 

accompanying balance sheets. The states are required, by originating legislation, to pay 50% of 

the administrative costs of DRA. Amounts billed to the states are calculated at the beginning of 

each fiscal year and are based on the states’ 50% assessment of DRA administrative costs. The 

following table indicates funds on hand received from member states. 

2018 2017

Balance of state funds on hand, beginning of year 236,538$ $ 342,023

Current year billed to and received from states 1,364,305 1,194,444 

Total available from states 1,600,843$ $ 1,536,467

Balance of state funds on hand, end of year $ - $ 236,538

40
DELTA REGIONAL AUTHORITY 

NOTES TO FINANCIAL STATEMENTS 

SEPTEMBER 30, 2018 AND 2017 

NOTE 6 – LIABILITIES COVERED AND NOT COVERED BY BUDGETARY 

RESOURCES 

Liabilities not covered by budgetary resources are liabilities for which congressional action 

(DRA appropriation bill) is needed before budgetary resources can be provided. Liabilities of 

DRA are classified as liabilities covered or not covered by budgetary resources (DRA state 

assessments, transfers/grants from other agencies) are as follows: 

2018 2017

Liabilities not covered by budgetary resources

Leave liability (state and other) $ 64,502 63,078$ 

Accounts payable (state and other) 90,637 17,730 

Deferred inflows from grants (RCAP) 93,371 62,247 

Deferred inflows from grants (state and other) - 90,000 

Grants payable (RCAP) 284,218 328,588 

Due to USDA (RCAP) 115,291 - 

Total liabilities not covered by budgetary resources 648,019 561,643 

Liabilities covered by budgetary resources

Intragovernmental :

Employer contributions and payroll taxes payable 1,827 2,524

Liability for advances and prepayments 4,120,542 232,065

Total intragovernmental 4,122,369 234,589 

With the public:

Accounts payable 2,540,060 1,269,219

Accrued funded payroll and leave 6,689 5,815

Employer contributions and payroll taxes payable 334 233

Total with the public 2,547,083 1,275,267 

Total liabilities covered by budgetary resources 6,669,452 1,509,856 

Total liabilities $ 7,317,471 2,071,499$ 

Other liabilities are classified as current. 

41
DELTA REGIONAL AUTHORITY 

NOTES TO FINANCIAL STATEMENTS 

SEPTEMBER 30, 2018 AND 2017 

NOTE 7 – OPERATING LEASES 

DRA leases its primary operating facilities, including substantially all furniture and fixtures used, 

under a three year operating lease arrangement with Coahoma County, Mississippi. DRA also 

leases space for the Little Rock office from the Department of Finance and Administration 

(DFA) – Division of Building Authority under an 18 month operating lease arrangement and a 

space for the Washington D.C. office from State Services Organization, Inc. under a six year 

operating lease arrangement. Future minimum lease payments at September 30, 2018, were: 

Fiscal Year Amount

2019 115,613$ 

2020 53,215

Total future lease payments 168,828$ 

The lease with Coahoma County may be terminated by DRA should DRA fail to receive funding 

from the United States, the existence of DRA be terminated, or should the governing body of 

DRA choose to move DRA’s office outside Coahoma County, Mississippi. The lease with the 

State Services Organization, Inc. may also be terminated for the above reasons. However, DRA 

will be liable for four months of base rent upon early termination of the State Services 

Organization, Inc. lease agreement. The DFA lease agreement requires termination through a 180 

days’ written notice if funds are insufficient for the DRA to continue operations where office 

space is being used. Rental expense was $146,945 and $134,102 for the years ended September 

30, 2018 and 2017, respectively. 

NOTE 8 – APPORTIONMENT CATEGORIES OF OBLIGATIONS INCURRED 

The direct obligations are obligations incurred against amounts apportioned under category B on 

the latest Standard Form (SF) 132. The reimbursable obligations are those incurred against the 

reimbursable agreements with Treasury. A summary of these obligations are as follows: 

2018 2017

Direct - category B Grants $ 26,558,424 $ 23,918,833

Direct - category B Administration 1,711,859 2,854,152

Total obligations $ 28,270,283 $ 26,772,985

42
DELTA REGIONAL AUTHORITY 

NOTES TO FINANCIAL STATEMENTS 

SEPTEMBER 30, 2018 AND 2017 

NOTE 9 – UNDELIVERED ORDERS AT THE END OF THE PERIOD 

The amount of the DRA’s budgetary resources obligated for undelivered orders was $48,528,103 

and $45,415,664 as of September 30, 2018 and 2017, respectively. 

 Unpaid 

Undelivered 

Orders 

 Paid 

Underlivered 

Orders 

 Total 

Undelivered 

Orders 

2018 48,528,103 $ $ - $ 48,528,103

2017 45,415,664 $ $ - $ 45,415,664

NOTE 10 – EXPLANATION OF THE RELATIONSHIP BETWEEN LIABILITIES NOT 

COVERED BY BUDGETARY RESOURCES ON THE BALANCE SHEETS AND THE 

CHANGE IN COMPONENTS REQUIRING OR GENERATING RESOURCES IN THE 

FUTURE PERIODS 

Liabilities not covered by budgetary resources totaled $648,019. There was no decrease in 

components requiring resources in future periods at September 30, 2018. Liabilities not covered 

by budgetary resources totaled $561,643, and the decrease in components requiring resources in 

future periods totaled $27,727 at September 30, 2017. The changes are the net increase/decrease 

of future funded expenses for annual leave and represent the difference between 

appropriations of annual funds for the prior and current annual funds. Accrued funded payroll 

liability is covered by budgetary resources and is included in the net cost of operations. Whereas, 

the unfunded leave liability includes the expense related to the increase in annual leave liability 

for which the budgetary resources will be provided in a subsequent period. 

NOTE 11 – COSTS AND EXCHANGE REVENUE 

Intragovernmental costs are those good/services purchased from a federal entity: 

Program Costs 2018 2017

Intragovernmental costs $ 184,433 $ 192,990

Public costs 24,864,784 20,850,090

Total DRA program costs 25,049,217 21,043,080

Intragovernmental earned revenue 1,712,526 -

Public earned revenue - -

Total DRA program earned revenue 1,712,526 -

Total DRA program net costs $ 23,336,691 $ 21,043,080

43
DELTA REGIONAL AUTHORITY 

NOTES TO FINANCIAL STATEMENTS 

SEPTEMBER 30, 2018 AND 2017 

NOTE 12 – PENSION PLANS 

Plan Description 

The Authority contributes to a defined contribution 401(k) plan covering all non-federal 

employees. Retirement expense is recorded for the amount of the Authority’s required 

contributions, determined in accordance with the terms of the plan. The plan is administered by 

Advanced Data Processing, Inc. The plan provides retirement and death benefits to plan members 

and their beneficiaries. Benefit provisions are contained in the Plan Document and were 

established and can be amended by action of the Authority’s governing body.

Additionally, the Authority’s federal employees participate in the Federal Employees’ 

Retirement System (FERS), a cost-sharing, multiple-employer defined benefit pension plan. 

FERS provides retirement and disability benefits, annual cost-of-living adjustments and death 

benefits to the plan members and beneficiaries. 

Funding Policy 

Contributions made by the Authority to the 401(k) defined contribution plan amounted to 

approximately $156,000 and $123,000 for the years ended September 30, 2018 and 2017, 

respectively. 

FERS covered employees, depending upon his or her hire date, are required to contribute 

between 0.8% and 4.4% of their annual covered salary. The Authority was required to contribute 

11.9% of annual covered payroll. The Authority’s contributions to FERS for the years ended 

September 30, 2018 and 2017 were approximately $31,750 and $44,500, respectively, which 

equaled the required contributions for each year. 

NOTE 13 – RISK MANAGEMENT

The Authority is exposed to various risks of loss related to torts; theft of, damage to and 

destruction of assets; business interruption; errors and omissions; employee injuries and 

illnesses; natural disasters and employee health and accident benefits. Commercial insurance 

coverage is purchased for claims arising from such matters other than those related to errors and 

omissions and natural disasters. Settled claims have not exceeded this commercial coverage in 

any of the three preceding years. 

44
DELTA REGIONAL AUTHORITY 

NOTES TO FINANCIAL STATEMENTS 

SEPTEMBER 30, 2018 AND 2017 

NOTE 14 – EXPLANATION OF DIFFERENCES BETWEEN THE STATEMENT OF 

BUDGETARY RESOURCES AND THE BUDGET OF THE UNITED STATES 

GOVERNMENT 

SFFAS No. 7, Accounting for Revenue and Other Financing Sources and Concepts for 

Reconciling Budgetary and Financial Accounting, requires an explanation of material differences 

between budgetary resources available, the status of those resources and outlays as presented in 

the Statement of Budgetary Resources to the related actual balances published in the Budget of 

the United States Government (Budget). Budgetary resources made available to DRA include 

current appropriations, unobligated appropriations and recoveries of prior year obligations. The 

Budget that will include the FY 2018 actual budgetary execution information is scheduled for 

publication in February 2019, which will be available through OMB’s website 

(http://www.whitehouse.gov/omb). Accordingly, information required for such disclosure is not 

available at the time of publication of these financial statements. Balances reported in the FY 

2017 SBR and the related President’s Budget reflected the following:

FY2017

 Budgetary 

Resources 

 New Obligations 

and Upward 

Adjustments 

(Total) 

 Disbributed 

Offsetting 

Receipts Net Outlays 

Statement of Budgetary 

Resources $ 27,128,010 $ 26,772,985 $ 15,527,290 - $ 

Budget of the U.S. 

Government 27,000,000 27,000,000 15,000,000 - 

$ 128,010 $ (227,015) $ 527,290 - $ 

The difference between the Statement of Budgetary Resources and the Budget of the United 

States Government for budgetary resources, obligations incurred and net outlays are primarily 

due to rounding. Note accrued funded payroll liability is covered by budgetary resources and is 

included in the net cost of operations, whereas unfunded annual leave liability includes the 

expense related to the increase in annual leave liability for which the budgetary resources will be 

provided in a subsequent period. 

NOTE 15 – RECONCILIATION OF NET COST OF OPERATIONS (PROPRIETARY) 

TO BUDGET 

Budgetary resources obligated are obligations for personnel, goods, services, benefits, etc., made 

by the Authority in order to conduct operations or acquire assets. Other (i.e., non-budgetary) 

financing resources are also utilized by the Authority in its program (proprietary) operations. For 

example, spending authority from offsetting collections and recoveries are financial 

resources from the recoveries of prior year obligations (e.g., the completion of a contract where 

not all the funds were used) and refunds or other collections (i.e., funds used to conduct 

operations that were previously budgeted). An imputed financing source is recognized for future 

45
DELTA REGIONAL AUTHORITY 

NOTES TO FINANCIAL STATEMENTS 

SEPTEMBER 30, 2018 AND 2017 

federal employee benefits costs incurred for the Authority employees that will be funded by 

Office of Personnel Management (OPM). Changes in budgetary resources obligated for goods, 

services and benefits ordered but not yet provided represent the difference between the beginning 

and ending balances of undelivered orders (i.e., goods and services received during the year 

based on obligations incurred the prior year represent a cost of operations not funded from 

budgetary resources). Resources that finance the acquisition of assets are budgetary resources 

used to finance assets and net cost of operations (e.g., increases in accounts receivables or 

capitalized assets). Financing sources yet to be provided represent financing that will be 

provided in future periods for future costs that are recognized in determining the net cost of 

operations for the present period. Finally, components not requiring or generating resources are 

costs included in the net cost of operations that do not require resources (e.g., depreciation and 

amortized expenses of assets previously capitalized). 

A reconciliation between budgetary resources obligated and net cost of operations (i.e., providing 

an explanation between budgetary and financial [proprietary] accounting) is as follows (note: in 

prior years this information was presented as a separate financial statement [the Statement of 

Financing]):

2018 2017

Budgetary resources obligated $ 28,270,283 $ 26,772,984

Spending authority from recoveries and offsetting collections (8,770,357) (188,630)

Imputed financing from costs absorbed by others 11,846 15,557

Disbursements of funds provided by member states and others 773,247 1,622,353

Disbursements of RCAP funds 2,275,609 3,495,511

Change in budgetary resources obligated for goods, services 

and benefits ordered but not yet provided 776,037 (10,648,131)

Resources that finance the acquisition of assets 26 1,163

Financing sources yet to be provided (27,727) - 

Net cost of operations $ 23,336,691 $ 21,043,080

NOTE 16 – SUBSEQUENT EVENTS

DRA has evaluated subsequent events occurring after the balance sheet date and through the date 

of November 12, 2018, the date the financial statements were available for release. Based upon 

this evaluation, DRA has determined that no subsequent events have occurred which require 

disclosure in the financial statements. 

46
Federal State and Other

Rural Community 

Assistance Program Eliminations Combined

ASSETS

Intragovernmental:

Fund balance with Treasury $ 57,231,491 $ - $ - $ 57,231,491 - $ 

Total intragovernmental 57,231,491 - - 57,231,491 - 

Cash 2,129,512 - 286,120 2,415,632 - 

Accounts receivable, net - 31,458 281,339 312,797 - 

General property and equipment, net 164,687 - - 164,687 - 

TOTAL ASSETS $ 57,231,491 $ 2,325,657 $ 567,459 $ 60,124,607 - $ 

LIABILITIES

Intragovernmental:

Other:

Employer contributions and payroll taxes 

payable $ 1,827 $ - $ - $ - $ 1,827

Liability for advances and prepayments 4,120,542 - - 4,120,542 - 

Total intragovernmental 4,122,369 - - 4,122,369 -

Interfund transfers 299,377 (376,617) 77,240 - -

Accounts payable 2,540,060 90,637 - 2,630,697 - 

Other:

Grants and other payables - - 492,880 492,880 - 

Accrued funded payroll and leave 6,689 64,502 - 71,191 - 

Employer contributions and payroll taxes 

payable 334 - - - 334

TOTAL LIABILITIES 6,968,829 (221,478) 570,120 7,317,471 - 

NET POSITION

Unexpended appropriations - all other funds 

(consolidated totals) 50,262,662 2,547,135 (2,661) 52,807,136 - 

Cumulative results of operations - all other 

funds (consolidated totals) - - - - -

TOTAL NET POSITION 50,262,662 2,547,135 (2,661) 52,807,136 - 

TOTAL LIABILITIES AND NET POSITION $ 57,231,491 $ 2,325,657 $ 567,459 $ 60,124,607 - $ 

DELTA REGIONAL AUTHORITY

COMBINING BALANCE SHEET

SEPTEMBER 30, 2018 

47
Federal State and Other

Rural Community 

Assistance Program Eliminations Combined

ASSETS

Intragovernmental

Fund balance with Treasury $ 47,592,322 $ - $ - $ 47,592,322 - $ 

Total intragovernmental 47,592,322 - - 47,592,322 - 

Cash 378,699 - 429,170 807,869 - 

Accounts receivable, net 26 47,234 148,447 195,707 - 

General property and equipment, net 219,978 - - 219,978 - 

TOTAL ASSETS $ 47,592,348 $ 645,911 $ 577,617 $ 48,815,876 - $ 

LIABILITIES

Intragovernmental:

Other:

Employer contributions and payroll taxes 

payable $ 2,524 $ - $ - $ - $ 2,524

Liability for advances and prepayments 232,065 - - 232,065 - 

Total intragovernmental 234,589 - - 234,589 - 

Interfund transfers 543,841 (692,960) 149,119 - -

Accounts payable 1,269,219 17,730 - 1,286,949 - 

Other:

Grants and other payables - 90,000 390,835 480,835 - 

Accrued funded payroll and leave 5,815 63,078 - 68,893 - 

Employer contributions and payroll taxes 

payable 233 - - - 233

TOTAL LIABILITIES 2,053,697 (522,152) 539,954 2,071,499 - 

NET POSITION

Unexpended appropriations - all other funds 

(consolidated totals) 45,538,625 1,168,063 37,663 46,744,351 - 

Cumulative results of operations - all other 

funds (consolidated totals) 26 - - - 26

TOTAL NET POSITION 45,538,651 1,168,063 37,663 46,744,377 - 

TOTAL LIABILITIES AND NET POSITION $ 47,592,348 $ 645,911 $ 577,617 $ 48,815,876 - $ 

DELTA REGIONAL AUTHORITY

COMBINING BALANCE SHEET

SEPTEMBER 30, 2017 

48
DELTA REGIONAL AUTHORITY

COMBINING STATEMENT OF NET COST

YEAR ENDED SEPTEMBER 30, 2018

Federal 

State and 

Other

Rural Community 

Assistance Program Eliminations Combined

PROGRAM COSTS

Council of Inspectors General on Integrity 

and Efficiency:

Gross costs $ 22,000,361 773,247$ $ 2,275,609 -$ 25,049,217 $ 

Less: earned revenue 1,712,526 - - - 1,712,526 

TOTAL NET PROGRAM COSTS 20,287,835 773,247 2,275,609 - 23,336,691 

NET COST OF OPERATIONS $ 20,287,835 773,247$ $ 2,275,609 -$ 23,336,691 $ 

49
DELTA REGIONAL AUTHORITY

COMBINING STATEMENT OF NET COST

YEAR ENDED SEPTEMBER 30, 2017

Federal 

State and 

Other

Rural Community 

Assistance Program Eliminations Combined

PROGRAM COSTS

Council of Inspectors General on Integrity 

and Efficiency:

Gross costs $ 15,925,216 1,622,353$ $ 3,495,511 -$ 21,043,080 $ 

Less: earned revenue - - - - -

TOTAL NET PROGRAM COSTS 15,925,216 1,622,353 3,495,511 - 21,043,080 

NET COST OF OPERATIONS $ 15,925,216 1,622,353$ $ 3,495,511 -$ 21,043,080 $ 

50
Federal

State and 

Other

Rural Community 

Assistance Program Eliminations Combined

UNEXPENDED APPROPRIATIONS 

Beginning balance $ 45,538,625 $ 1,168,063 $ 37,663 -$ 46,744,351 $ 

BUDGETARY FINANCING SOURCES 

Appropriations received 25,000,000 - - - 25,000,000 

Appropriations used (20,275,963) - - - (20,275,963) 

OTHER FINANCING SOURCES (USES)

Cost of operations absorbed by member states and others 2,152,319 - - - 2,152,319 

Cost of operations absorbed by RCAP - - 2,235,285 - 2,235,285 

Disbursements of funds provided by member states and others (773,247) - - - (773,247) 

Disbursements of RCAP funds - - (2,275,609) - (2,275,609) 

 -

TOTAL FINANCING SOURCES (USES) 4,724,037 1,379,072 (40,324) 6,062,785

TOTAL UNEXPENDED APPROPRIATIONS $ 50,262,662 $ 2,547,135 $ (2,661) -$ 52,807,136 $ 

CUMMULATIVE RESULTS OF OPERATIONS

Beginning balance $ 26 $ - $ - -$ $ 26

BUDGETARY FINANCING SOURCES 

Appropriations used 20,275,963 - - - 20,275,963 

OTHER FINANCING SOURCES

Imputed financing from costs absorbed by others 11,846 - - - 11,846 

Disbursements of RCAP funds - - 2,275,609 - 2,275,609 

Disbursements of funds provided by member states and others 773,247 - - - 773,247 

TOTAL FINANCING SOURCES 20,287,809 773,247 2,275,609 - 23,336,665 

NET COST OF OPERATIONS 20,287,835 773,247 2,275,609 - 23,336,691 

NET CHANGE (26) - - - (26)

TOTAL CUMULATIVE RESULTS OF OPERATIONS - - - - -

NET POSITION $ 50,262,662 $ 2,547,135 $ (2,661) -$ 52,807,136 $ 

YEAR ENDED SEPTEMBER 30, 2018

DELTA REGIONAL AUTHORITY

COMBINED STATEMENT OF CHANGES IN NET POSITION

51
Federal

State and 

Other

Rural Community 

Assistance Program Eliminations Combined

UNEXPENDED APPROPRIATIONS 

Beginning balance $ 36,474,845 $ 1,101,736 $ (19,594) -$ 37,556,987 $ 

BUDGETARY FINANCING SOURCES 

Appropriations received 25,000,000 - - - 25,000,000 

Appropriations used (15,936,220) - - - (15,936,220) 

OTHER FINANCING SOURCES (USES)

Cost of operations absorbed by member states and others 1,688,680 - - - 1,688,680 

Cost of operations absorbed by RCAP - - 3,552,768 - 3,552,768 

Disbursements of funds provided by member states and others (1,622,353) - - - (1,622,353) 

Disbursements of RCAP funds - - (3,495,511) - (3,495,511) 

TOTAL FINANCING SOURCES (USES) 9,063,780 66,327 57,257 9,187,364

TOTAL UNEXPENDED APPROPRIATIONS $ 45,538,625 $ 1,168,063 $ 37,663 -$ 46,744,351 $ 

CUMMULATIVE RESULTS OF OPERATIONS

Beginning balance $ (26,536) $ - $ - -$ (26,536) $ 

BUDGETARY FINANCING SOURCES 

Appropriations used 15,936,221 - - - 15,936,221 

OTHER FINANCING SOURCES

Imputed financing from costs absorbed by others 15,557 - - - 15,557 

Disbursements of RCAP funds - - 3,495,511 - 3,495,511 

Disbursements of funds provided by member states and others 1,622,353 - - - 1,622,353 

TOTAL FINANCING SOURCES 15,951,778 1,622,353 3,495,511 - 21,069,642 

NET COST OF OPERATIONS 15,925,216 1,622,353 3,495,511 - 21,043,080 

NET CHANGE 26,562 - - - 26,562 

TOTAL CUMULATIVE RESULTS OF OPERATIONS 26 - - - 26

NET POSITION $ 45,538,651 $ 1,168,063 $ 37,663 -$ 46,744,377 $ 

DELTA REGIONAL AUTHORITY

COMBINED STATEMENT OF CHANGES IN NET POSITION

YEAR ENDED SEPTEMBER 30, 2017

52
DELTA REGIONAL AUTHORITY

YEAR ENDED SEPTEMBER 30, 2018

Federal 

State and 

Other

Rural Community 

Assistance Program

Elimination

s Combined

RESOURCES USED TO FINANCE ACTIVITES

BUDGETARY RESOURCES OBLIGATED

Obligations incurred $28,270,283 $ - $ - $ - $ 28,270,283

Less spending authority from offsetting collections and recoveries 8,770,357 - - - 8,770,357

Obligations net of offsetting collections and recoveries 19,499,926 - - - 19,499,926

Net obligations 19,499,926 - - - 19,499,926

OTHER RESOURCES

Imputed financing from costs absorbed by others 11,846 - - - 11,846

Disbursements of funds provided by member states and others - 773,247 - - 773,247

Disbursements of RCAP funds - - 2,275,609 - 2,275,609

NET OTHER RESOURCES USED TO FINANCE ACTIVITIES 11,846 773,247 2,275,609 - 3,060,702

TOTAL RESOURCES USED TO FINANCE ACTIVITIES 19,511,772 773,247 2,275,609 - 22,560,628

RESOURCES USED TO FINANCE ITEMS NOT PART OF THE NET 

COST OF OPERATIONS

Change in budgetary resources obligated for goods, services and benefits 

ordered but not yet provided (776,037) - - - (776,037)

Other (26) - - - (26)

TOTAL RESOURCES USED TO FINANCE ITEMS NOT PART OF 

THE NET COST OF OPERATIONS (776,063) - - - (776,063)

TOTAL RESOURCES USED TO FINANCE THE NET COST OF 

OPERATIONS 20,287,835 773,247 2,275,609 - 23,336,691

COMPONENTS OF THE NET COST OF OPERATIONS THAT WILL 

REQUIRE OR GENERATE RESOURCES IN THE CURRENT PERIOD

Increase in annual leave liability - - - - -

TOTAL COMPONENTS OF THE NET COST OF OPERATIONS THAT 

WILL REQUIRE OR GENERATE RESOURCES IN THE FUTURE 

PERIODS - - - - -

TOTAL RESOURCES USED TO FINANCE THE NET COST OF 

OPERATIONS $ 20,287,835 $ 773,247 $ 2,275,609 $ - $ 23,336,691

COMBINING RECONCILIATION OF NET COST OF OPERATIONS (PROPRIETARY) TO BUDGET

53
DELTA REGIONAL AUTHORITY

COMBINING RECONCILIATION OF NET COST OF OPERATIONS (PROPRIETARY) TO BUDGET

YEAR ENDED SEPTEMBER 30, 2017

Federal 

State and 

Other

Rural Community 

Assistance Program

Elimination

s Combined

RESOURCES USED TO FINANCE ACTIVITES

BUDGETARY RESOURCES OBLIGATED

Obligations incurred $ 26,772,985 $ - $ - $ - $ 26,772,985

Less spending authority from offsetting collections and recoveries 183,360 - - - 183,360

Obligations net of offsetting collections and recoveries 26,589,625 - - - 26,589,625

Net obligations 26,589,625 - - - 26,589,625

OTHER RESOURCES

Imputed financing from costs absorbed by others 15,557 - - - 15,557

Disbursements of funds provided by member states and others - 1,622,353 - - 1,622,353

Disbursements of RCAP funds - - 3,495,511 - 3,495,511

NET OTHER RESOURCES USED TO FINANCE ACTIVITIES 15,557 1,622,353 3,495,511 - 5,133,421

TOTAL RESOURCES USED TO FINANCE ACTIVITIES 26,605,182 1,622,353 3,495,511 - 31,723,046

RESOURCES USED TO FINANCE ITEMS NOT PART OF THE NET 

COST OF OPERATIONS

Change in budgetary resources obligated for goods, services and benefits 

ordered but not yet provided 10,653,404 - - - 10,653,404

Other (1,165) - - - (1,165)

TOTAL RESOURCES USED TO FINANCE ITEMS NOT PART OF 

THE NET COST OF OPERATIONS 10,652,239 - - - 10,652,239

TOTAL RESOURCES USED TO FINANCE THE NET COST OF 

OPERATIONS 15,952,943 1,622,353 3,495,511 - 21,070,807

COMPONENTS OF THE NET COST OF OPERATIONS THAT WILL 

REQUIRE OR GENERATE RESOURCES IN THE CURRENT PERIOD

Increase in annual leave liability (27,727) - - - (27,727)

TOTAL COMPONENTS OF THE NET COST OF OPERATIONS THAT 

WILL REQUIRE OR GENERATE RESOURCES IN THE FUTURE 

PERIODS (27,727) - - - (27,727)

TOTAL RESOURCES USED TO FINANCE THE NET COST OF 

OPERATIONS $ 15,925,216 $ 1,622,353 $ 3,495,511 $ - $ 21,043,080

54
Federal State and Other 

Rural Community 

Assistance Program Total

Grants, subsidies and contributions $ 18,470,340 $ - $ 2,275,609 $ 20,745,949

Consulting and other services 400,010 43,416 - 443,426

Employee benefits 265,836 79,216 - 345,052

Personnel services 893,630 345,580 - 1,239,210

Seminars and meetings - 4,399 - 4,399

Travel and transportation of persons 72,484 33,580 - 106,064

Rent, communications and utilities 144,895 70,311 - 215,206

Supplies and materials 31,310 10,248 - 41,558

Printing and reproduction 4,847 2,804 - 7,651

Office expense 4,483 183,693 - 188,176

TOTAL EXPENDITURES $ 20,287,835 $ 773,247 $ 2,275,609 $ 23,336,691

YEAR ENDED SEPTEMBER 30, 2018

DELTA REGIONAL AUTHORITY

SCHEDULE OF EXPENDITURES

Paid From

55
DRA 

Obligated

Total 

Project Funds

Funding 

Priority %

DRA 

Obligated

Total 

Project Funds

Funding 

Priority %

DRA 

Obligated

Total 

Project Funds

Funding 

Priority %

A. Basic Public Infrastructure 8,533,368 $ $ 41,447,325 58.5% 3,818,801 $ $ 15,580,377 37.0% 4,375,155 $ $ 98,374,292 42.4%

B. Transportation Infrastructure 2,030,162 18,630,577 13.9% 1,563,060 12,061,015 15.1% 1,658,999 44,428,541 16.1%

C. Business Development 1,755,889 8,351,196 12.0% 2,046,194 16,674,410 19.8% 1,639,757 46,595,849 15.9%

D. Work Development 1,921,076 19,911,775 13.2% 1,969,852 30,175,127 19.1% 1,275,062 4,650,168 12.4%

E. Other 350,000 450,000 2.4% 922,917 2,282,729 8.9% 1,361,512 13,138,568 13.2%

$ 14,590,495 $ 88,790,873 100.0% 10,320,824 $ $ 76,773,658 100.0% 10,310,485 $ $ 207,187,418 100.0%

DRA 

Obligated State Allocation State %

DRA 

Obligated

State 

Allocation State %

DRA 

Obligated State Allocation State %

State Allocations

Alabama $ 1,529,491 $ 1,242,514 10.3% 1,046,252 $ $ 1,046,252 10.1% 1,085,395 $ $ 1,085,396 10.5%

Arkansas 2,040,625 1,718,707 14.2% 1,442,110 1,442,110 13.9% 1,522,320 1,522,320 14.7%

Illinois 1,187,302 1,025,970 8.5% 844,671 844,671 8.1% 768,862 838,670 8.1%

Kentucky 1,486,395 1,130,172 9.4% 924,312 924,312 8.9% 918,441 918,441 8.8%

Louisiana 2,655,528 2,439,398 20.2% 2,079,313 2,069,314 19.9% 1,795,360 1,795,360 17.3%

Mississippi 2,712,653 1,869,800 15.5% 1,468,630 1,538,098 14.8% 1,635,176 1,635,177 15.8%

Missouri 1,438,501 1,377,358 11.4% 1,152,368 1,152,368 11.1% 1,147,049 1,147,050 11.1%

Tennessee 1,540,000 1,275,656 10.6% 1,363,168 1,363,168 13.1% 1,437,882 1,437,882 13.9%

$ 14,590,495 $ 12,079,575 100.0% 10,320,824 $ $ 10,380,293 100.0% 10,310,485 $ $ 10,380,296 100.0%

*Grant obligation process for 2018 not completed as of audit report date. 

Obligations may be more than allocated due to deobligation and reobligation of prior years' unused funds. 

Totals may not add due to rounding. 

2018

2017

2017

2016

2016

DELTA REGIONAL AUTHORITY

SCHEDULES OF GRANTS MADE*

YEARS ENDED SEPTEMBER 30, 2018, 2017 AND 2016

2018
DRA 

Obligated

Total 

Project Funds

Funding 

Priority %

DRA 

Obligated

Total 

Project Funds

Funding 

Priority %

DRA 

Obligated

Total 

Project Funds

Funding 

Priority %

A. Basic Public Infrastructure 4,480,890 $ $ 30,383,560 68.1% 7,240,001 $ $ 85,797,841 72.5% 8,520,150 $ $ 86,404,125 85.9%

B. Transportation Infrastructure 2,100,000 2,725,000 31.9% 2,450,000 65,396,670 24.5% 1,400,000 3,480,500 14.1%

C. Business Development - - 0.0% 300,000 9,610,052 3.0% - - 0.0%

D. Work Development - - 0.0% - - 0.0% - - 0.0%

E. Other - - 0.0% - - 0.0% - - 0.0%

$ 6,580,890 $ 33,108,560 100.0% 9,990,001 $ $ 160,804,563 100.0% 9,920,150 $ $ 89,884,625 100.0%

DRA 

Obligated

State 

Allocation State %

DRA 

Obligated State Allocation State %

DRA 

Obligated State Allocation State %

State Allocations

Alabama $ - $ - 0.0% $ - $ - 0.0% $ - $ - 0.0%

Arkansas 1,030,684 1,030,684 15.7% 1,350,000 1,350,000 13.5% 1,355,500 1,355,500 13.7%

Illinois 305,706 305,706 4.6% 515,000 515,000 5.2% 120,150 120,150 1.2%

Kentucky 1,174,500 1,174,500 17.8% 800,000 800,000 8.0% 800,000 800,000 8.1%

Louisiana 1,400,000 1,400,000 21.3% 1,211,901 1,211,901 12.1% 1,364,000 1,364,000 13.7%

Mississippi 820,000 820,000 12.5% 2,963,100 2,963,100 29.7% 5,030,500 5,030,500 50.7%

Missouri - - 0.0% 1,600,000 1,600,000 16.0% 1,250,000 1,250,000 12.6%

Tennessee 1,850,000 1,850,000 28.1% 1,550,000 1,550,000 15.5% - - 0.0%

$ 6,580,890 $ 6,580,890 100.0% 9,990,001 $ $ 9,990,001 100.0% 9,920,150 $ $ 9,920,150 100.0%

*Grant obligation process for 2018 not completed as of audit report date. 

2018 2017 2016

COMMUNITY INFRASTRUCTURE FUND (CIF)

DELTA REGIONAL AUTHORITY

SCHEDULES OF GRANTS MADE (CONTINUED)*

YEARS ENDED SEPTEMBER 30, 2018, 2017 AND 2016

2018 2017 2016